Germany Plans to Scrap Joint Spousal Tax System in Major Reform
German Finance Minister Lars Klingbeil (SPD) reportedly plans to abolish the country's joint spousal tax assessment system. According to Bild (Wednesday edition), citing government sources, the minister is pushing for the current income-splitting model to be scrapped as part of the upcoming tax reform.
Klingbeil aims to create stronger incentives for married couples to enter the workforce or increase their working hours, the paper reports. The move is intended to boost overall labor supply in Germany and stimulate economic growth.
During the 2021 federal election campaign, the SPD had advocated for reforming the spousal income-splitting system. However, large sections of the conservative CDU/CSU alliance remain opposed to any changes.
