Additional Tax Revenues and Hidden Tax Increases – On the Results of the Tax Revenue Estimate of May 2016

The “tax revenues” working group has upwardly revised its revenue forecasts for the years after 2016. Tax revenues turned out to be higher than expected back in 2015. The changes in the following years are also due to revised assessments of the macroeconomic framework conditions. Assessments of total gross wages and compensation are now higher than in autumn. The rising taxation rate and the growing burden on gross wages and compensation points to fiscal policy leeway that could be used to refund additional revenues arising from tax progression.