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6h ago

Germany’s Spousal Income-Splitting Debate Moves From Alarm to Concrete Reform Paths

New analyses indicate five‑figure tax losses would hit only rare high‑income outliers.

Auch steuerlich attraktiv: Dank Ehegattensplitting sparen Verheiratete oft Steuern. Doch die Regelung könnte sich ändern.
Frau macht ihre Steuererklärung

Overview

  • Media claims of €20,000 annual losses trace to a DIW maximum of €19,247 that requires about €556,000 in taxable income, far above typical households.
  • Typical advantages from the current rule are far smaller, with examples showing savings ranging from roughly €300 to about €2,700 a year depending on earnings gaps.
  • No change has been enacted as SPD figures call for reform and the Union defends the status quo, keeping the issue open in early October.
  • Studies cited suggest reform could raise around €20 billion a year, with floated options including capping high‑income benefits, a transferable basic allowance, or targeted credits.
  • The Thüringer CDU is promoting a shift to Familiensplitting that would factor in children and could lower family taxes but would likely reduce state revenue.