The federal government is working on a tax reform that will abolish tax classes 3 and 5. This can have greater implications for married couples.
Berlin – It was already announced in the coalition agreement, but now the traffic light apparently wants to get things done. Finance Minister Christian Lindner (FDP) announced a few weeks ago that he would abolish tax classes 3 and 5. Instead, married couples should both be classified in tax class 4 in the future.
By merging the two tax classes, the higher earner in the marriage would in future receive less net of the gross, while the partner with a lower salary would then receive more. Spouses who both earn equally well and fall into tax class 4 are not affected by the change.
Tax classes 3 and 5: That's what's behind it
The idea behind tax classes 3 and 5 was originally that the family would have more monthly income available overall, even if an additional payment was often due every year. The higher earner is classified in tax class 3 and therefore pays very few taxes, while the lower earner (often a woman) pays very high taxes and thus takes on virtually the entire tax burden. But even if the family has more money overall, it creates a power imbalance. And it is more difficult for women to go back to work after the birth of a child, for example, because they contribute less to the family net.
From an economic perspective, this makes little sense, especially in times of skilled labor shortages. That's why the traffic light government wants to make adjustments here - and increase work incentives, especially for women.
Two examples show the impact of abolishing tax classes
There are different opinions as to whether the combination of tax classes 3 and 5 is better or worse for married couples. The wage tax assistance association United Wage Tax Assistance e. V. (VLH) writes that these tax classes are only worthwhile for the couple at first glance. The VLH gives an example:
Basically nothing changes for married couples - except for when they have the money. And that is the crucial point that is important for the Wage Tax Assistance Association in Bavaria (Lohi Bayer eV). “Millions of married couples would therefore have less household budget available each month as a result of the abolition of the tax class combination 3/5, even if the tax burden ultimately remains unchanged,” it says in a statement.
The association also gives an example to illustrate this:
Here the tax association points out that married couples feel like they have less money if they are in tax class 4 - even if that is not the case in reality when viewed over the entire year.
However, it is also important to emphasize the importance of the change in the law for women, who under current law are more often in tax class 5 than their spouses. This creates targeted incentives that discourage women from working more - after all, this can result in the couple as a unit having less money available each month. However, this puts women at a disadvantage throughout their lives: in the event of a separation, they are more likely to face financial challenges because they have had less opportunity to build up a cushion. This also has a significant impact on pensions. Women are significantly more likely to be affected by old-age poverty than men because they earn less on average and are therefore entitled to less pension later on.