ifo Viewpoint
Advantages and Disadvantages of a Reform of the Marital Splitting System
Clemens Fuest
ifo Institut, München, 2021
ifo Viewpoint No. 227
ifo Institut, München, 2021
ifo Viewpoint No. 227
The taxation of married couples in Germany has long been considered in need of reform. The current marital splitting system provides for married couples to be taxed jointly. There is always an advantage if the partners have different incomes. This is due to the progressive income tax rate: the tax rate rises with increasing income.