ifo Economic Panel: Majority supports higher tax rate for top earners
Created: 06/12/2022, 15:54
In a survey by the Munich ifo Institute, economists advocate a higher tax rate on very high incomes.
Munich in Germany - 56 percent of the participants in the ifo economists panel published in Munich on Tuesday were in favor of increasing the tax rate for the wealthy on annual incomes of 278,000 euros or more.
A higher tax rate for top earners from an annual income of 59,000 euros rejected 52 percent of them.
"Contrary to what the name suggests, an increase in the top tax rate would not only affect those earning very high incomes, but would also put a particular strain on the middle class," explained Ifo researcher Marcel Hauler on the results of the economists panel, in which 153 experts participated.
According to the ifo Institute, 76 percent of the participating experts also supported the Inflation Compensation Act recently passed by the Bundestag and Bundesrat, which provides for compensation for the so-called cold progression to relieve taxpayers.
The term cold progression describes the effect that someone slips into a higher tax rate through a wage increase that at most compensates for the inflation rate, without their real income increasing.
In order to avoid this, the German tax rate is now being changed in such a way that higher tax rates apply to higher taxable income.
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