ifo researcher Peichl for reform of family taxation in Germany
A few days before International Women’s Day, ifo researcher Andreas Peichl has come out in favor of reforming the German system of family taxation. “It should be changed to be more like the French system. This means it would be not marriage itself, but having children that would incur tax advantages,” says Peichl.
“As a result, second earners, mostly women, would be taxed less.” According to Peichl, his proposal can be explained using the theory of optimal taxation. Such a system with more elements of individual taxation would be more efficient and fairer than the form of family taxation currently practiced only in Germany and a few Eastern European countries. “A model more in line with the French system of family taxation would offer a greater financial incentive for the second earner to work more,” says Peichl. “For example, it could reduce the differences in income between men and women. At the moment, the German tax system penalizes the wife’s work.”
The path toward more equal opportunities is simple, Peichl added. It also includes optimal child care and nursing, generous maternity/parental leave conditions, and legal regulations on telecommuting and on breaks in employment. “But people have to want such reforms. Legislators thus still have work to do,” says Peichl.
Publications
Peichl, Andreas, Julia Schricker, Henrike von Platen, Ulf Rinne, Hilmar Schneider, Ute Klammer, Christina Boll, Ingo Weller and Lena Göbel, "Entgelttransparenzgesetz gegen Lohndiskriminierung: Viel Aufwand, wenig Nutzen?", ifo Schnelldienst 72 (04), 2019, 03–26
Hermle, Johannes and Andreas Peichl, "Jointly Optimal Taxes for Different Types of Income", CESifo Working Paper No. 7248, September 2018
Press article
Andreas Peichl, Frankreich als Vorbild | Jan 15, 2018
