Overview

• Researchers cite a theoretical maximum advantage of about €19,247 a year, which requires roughly €556,000 in taxable income and a large earnings gap between spouses.
• Realistic examples point to much smaller savings, such as around €2,700 for a €50,000/€20,000 income split, about €300 for €40,000/€30,000, and roughly €2,085 for €50,000/€10,000.
• SPD figures argue the system is outdated and dampens second earners’ work incentives, while the Union pledges to keep it, and no legislative change has been enacted.
• Studies suggest reform could raise roughly €20 billion in additional revenue, with options discussed including a cap on high-income benefits, a transferable basic allowance, or a shift to Familiensplitting.
• Media and social posts touting a blanket €20,000 tax hike are based on extreme cases that analysts say are unrepresentative of typical households.