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Tax Revenue, Minimum Wage and the "Bracket Creep" in the Income-tax Structure

Christian Breuer
ifo Institut, München, 2014

ifo Schnelldienst, 2014, 67, Nr. 11, 38-42

The Working Group Tax Revenue Estimates has again expanded its forecasts for the development of tax revenues. A particularly favourable development is foreseen for revenue from the payroll tax. This has increased over GDP by 0.6 percentage points since 2010, which can be attributed in part to inflation-related extra revenue. The improved revenue situation is likely to reinforce the calls for a reduction of the "bracket creep" in the income-tax structure.

JEL Classification: H200, H210, H240

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ifo Institut, München, 2014