On recently hearing that the German government are thinking of stopping the Tax splitting for families or married couples on their tax returns. My first thought was “Well, we're off to Poland, France, Ireland, or Luxembourg”.
As an ex serviceman with dual nationality, and having worked for over 40 years in a well-paid German job, I have a pretty good, rent, UK pension and service pension. My wife has under €1000, so this tax splitting works well for us.
If they decide to stop this (Upfront, I'm not sure if this would also apply to pensioners) the WISO Tax software says that I would have to pay about €2000 Tax more a year, and my wife nothing.
What are your thoughts on this.
Joint taxation of spouses. Ehegattensplitting.
- john_b
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Re: Joint taxation of spouses. Ehegattensplitting.
This debate flares up every few years often driven by concerns about fairness or labour incentives, but actual change tends to be incremental, slow, or blocked altogether.
Whilst certain figures in the SPD — notably Lars Klingbeil — have suggested ending the current system “in its present form” for new marriages only, not touching existing ones. So the idea is more about phasing it out over time, not pulling the rug from under current couples.
CDU/CSU are strongly against abolition, arguing it would effectively raise taxes on families. This opposition makes any radical change unlikely.
Also, the constitutional court has historically protected the tax treatment of marriage, so any reform would need careful transitional rules and probably couldn’t be a sudden, full abolition anyway.
So yes — people in government are talking about it again. But no — there is no imminent move to abolish it outright, and certainly nothing that would suddenly affect existing married couples.
FWIW...
Whilst certain figures in the SPD — notably Lars Klingbeil — have suggested ending the current system “in its present form” for new marriages only, not touching existing ones. So the idea is more about phasing it out over time, not pulling the rug from under current couples.
CDU/CSU are strongly against abolition, arguing it would effectively raise taxes on families. This opposition makes any radical change unlikely.
Also, the constitutional court has historically protected the tax treatment of marriage, so any reform would need careful transitional rules and probably couldn’t be a sudden, full abolition anyway.
So yes — people in government are talking about it again. But no — there is no imminent move to abolish it outright, and certainly nothing that would suddenly affect existing married couples.
FWIW...
- PandaMunich
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Re: Joint taxation of spouses. Ehegattensplitting.
Yes, I don't see Ehegattensplitting being abandoned any time soon, it's a SPD minister who is pushing it and they are only the junior partner in the coalition.
But there is another problem on the horizon:
It's a CDU minister who is threatening to increase the income of public health insurance (which would mean the state would have to pay less to them in state subsidies) by abolishing free family insurance (Familienversicherung) for non-working spouses: https://www-br-de.translate.goog/nachri ... _hist=true
--> that one could actually happen.
But there is another problem on the horizon:
It's a CDU minister who is threatening to increase the income of public health insurance (which would mean the state would have to pay less to them in state subsidies) by abolishing free family insurance (Familienversicherung) for non-working spouses: https://www-br-de.translate.goog/nachri ... _hist=true
--> that one could actually happen.
- Fraufruit
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Re: Joint taxation of spouses. Ehegattensplitting.
Yes, Himself was telling me about that one yesterday.