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Tax reform: This is how economic researchers want to create 400,000 full

2021-10-08T20:12:28.754Z


Less taxes, more subsidies: the Munich Ifo Institute wants to relieve large families financially and thus ensure that more people work full-time again. But the researchers also consider the higher earners.


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Home office with children (archive image)

Photo: Karl-Josef Hildenbrand / dpa

According to a calculation by the Munich Ifo Institute, a comprehensive reform of taxes and subsidies could create around 400,000 full-time positions.

The disposable income of large families and single parents would increase by increasing the child allowances and converting the current spouse splitting to a real spouse splitting.

In addition to such tax breaks, government grants for low-wage earners are to be reduced less sharply.

The aim is to create incentives to ensure that more work is also worthwhile for people with low incomes.

Couples with children would have the greatest gains as a result.

You could look forward to up to three percent more income.

For single parents, the disposable income would increase by 1.6 percent.

"In particular, families with children would be better off in terms of their disposable household income compared to the status quo," says study director Andreas Peichl.

His proposal would reduce inequality in overall disposable income.

According to the Ifo, the relief is to be financed through higher top and wealthy tax rates as well as the increase in the basic tax allowance and the lump sums.

In this way, the reform could be designed to be revenue-neutral for the state budget.

In return, the researchers even consider the complete abolition of the Solis feasible.

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Source: spiegel

All business articles on 2021-10-08

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