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SPD Pushes to Scrap Marriage Tax Splitting as Union Vows to Block

Analysts estimate scrapping the rule could yield roughly €20 billion in revenue.

Overview

  • SPD leaders, including Wiebke Esdar, argue the splitting favors single-earner households and discourages women's employment.
  • CDU/CSU finance spokesman Fritz Güntzler says the bloc will maintain the rule and cites Constitutional Court rulings to defend the system.
  • The Finance Ministry says abolition is not in the current coalition agreement and notes it routinely reviews potential tax-law simplifications.
  • DIW estimates a maximum annual tax advantage of €19,247, while typical couples save much less, such as about €2,085 at €50,000 and €10,000 incomes.
  • Reporting suggests repeal would add about €20 billion to state coffers and raise taxes mainly for higher-income single-earner couples, with studies indicating modest gains in women's labor participation.