The traffic light government is planning fundamental changes to the tax brackets for spouses.
The project affects millions of Germans.
Berlin – The tax system in Germany is to be reformed – this is what the Federal Ministry of Finance is planning under Finance Minister Christian Lindner (FDP).
Tax classes 3 and 5, which are used by millions of couples, are affected.
In March it became known that a legislative package is currently being drawn up for the project envisaged in the coalition agreement.
What the traffic light is planning, who is affected.
Reform of tax brackets: who is affected?
Tax classes 3 and 5 are being reformed. These are intended for spouses and registered civil partnerships who want to use the tax-reducing effect of the splitting procedure.
So far it has worked like this: If, for example, there is a large difference in income between a couple, the higher earner chooses tax class 3, the other tax class 5. Then there is a high tax burden for the partner in class 5, but this is compensated by the higher net salary of the higher earner in class 3 more than balanced.
The disadvantage of this is that couples with this tax model are often threatened with high additional tax payments.
Abolish tax brackets: That's what the traffic light is planning
The traffic light is now planning that partners who use the tax class combination 3 and 5 should both be transferred to class 4 with factor methods in the future.
The wage tax deducted is reduced by a factor that the tax authorities calculate from the expected wage tax.
This avoids higher taxation in class 5 and achieves a fair distribution of the tax burden for both partners based on the wages they received together in the marriage.
The splitting method is therefore retained.
Why does the traffic light want to change the previous system?
Family Minister Lisa Paus (Greens) said that a gender-equitable tax system needed a redesign of tax classes 3 and 5. "This will distribute the wage tax burden more fairly between spouses," said the Green politician to the newspapers of the Funke media group.
This would strengthen economic equality and social security for women.
Background: It is mainly women who are in tax class 5: They usually earn less than their spouses or take care of children or relatives instead of being fully employed.
With the reform, the traffic light government wants to distribute the tax burden more fairly and involve the women concerned more in working life.
Advantages and disadvantages of the reform for taxpayers
The advantages that the reform can bring are obvious: Couples can thus avoid high additional tax payments.
In addition, the partner in tax class 5 has a lower monthly tax burden, i.e. more net than the gross, and can thus benefit more from dependent wage replacement benefits such as short-time work benefits.
However, there is a disadvantage for couples where only one partner works: This person then receives a lower monthly net salary than before.
However, there is then a larger refund in the tax return or the additional payments are reduced.
With material from the dpa
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