Besteuerung von Ehegatten: Fiskalische und distributive Wirkungen aktueller Reformoptionen

The German system of income splitting for married couples has recently re-emerged as a subject of political debate. This paper examines possible reforms of the system, ranging from its complete abolition to family-oriented taxation models. The study employs a microdata-based tax simulation to evaluate the redistributive effects of these reforms across different household types and income groups, with a particular focus on intra-household impacts. Our findings suggest that the factor method provided for under § 39f EStG, as applied to payroll tax withholding, can help reduce gender inequality and promote a more equitable distribution of the tax burden among households. Combined with higher child tax credits, the method may also provide more effective financial support for families.