Tax plans of the greens burden married couples

Tax plans of the Greens burden married couples

According to expert calculations, the tax concept of the greens does not only burden top earners. Married couples already belonging to the upper middle class would be burdened by the party’s plans, in some cases heavily, reports the "suddeutsche zeitung" (monday) with reference to the berlin tax law expert frank hechtner.

According to the reform, married couples with two children living in west germany would have to pay more taxes starting at a gross monthly wage of 5151 euros. If a couple earns 6,000 euros a month, they would have to pay an additional 105.97 euros to the tax authorities, or 1271.64 euros a year. Who as a couple 10.600 euro in the month earned, must count according to computations hechtners on a tax disadvantage of nearly 600 euro in the month, thus 7200 euro in the year.

The reason for the comparatively high burden on married couples, according to the report, is the changes the greens have made to the marital splitting system want to make. While the SPD wants to spare already married couples from the changes, the reforms of the greens should also apply to old cases.

More burdens for singles

according to hechtner’s calculations, the green concept also provides for tax increases, in some cases significant, for singles. Up to a monthly gross income of 5872 euros, however, no one would have to pay taxes anymore. Those who earn less will be relieved – those who have a gross of 5200 euros will benefit the most – with 13.36 euros per month. If a single person earns 8000 euros gross, he or she would have to pay an additional 127.66 euros per month under the greens’ tax reform program.

In the opinion of the german taxpayers’ association, the party program of the green party partially violates applicable laws. "Neither the retroactive effect of the wealth tax nor the plans for spousal splitting are compatible with the constitution", writes association president reiner holznagel in an article for handelsblatt online. Small incomes would also be affected "especially when it comes to marriages where spouses earn different incomes".

The greens had adopted their program for the federal elections at the weekend. It includes a wealth levy as well as an increase in the top tax rate from 42 to 49 percent. Inheritance tax revenue is to be doubled to 8.6 billion euros a year, while spousal splitting is to be melted down.