Moving to a system of individual taxation (from a joint or family-based taxation) would substantially increase the supply of labour in Germany, stimulate the economy and help reverse labour market gender inequalities, according to a report published by The Wilfried Martens Centre for European Studies and prepared on their behalf by the RWI – Leibniz Institute for Economic Research.
The new paper, Me, Myself and I: Could Tax Individualisation Create Jobs and Reduce Inequality? [1], shows the consequences of moving to individual-based income taxation in Germany. The study highlights that such a tax reform could reduce debt levels and spur economic growth in the face of increased public debt.
The report also highlights that a switch to individual taxation could help reverse gender inequalities in the labour market, which have been exacerbated as a result of the Coronavirus.
The paper recommends that:
The full report is available here: Me, Myself and I: Could Tax Individualisation Create Jobs and Reduce Inequality? [1]
Notes to editors:
Ronald Bachmann is head of the Department of Labour Markets, Education and Population at the RWI – Leibniz Institute for Economic Research and adjunct professor at the Düsseldorf Institute for Competition Economics (DICE) at Heinrich-Heine-Universität Düsseldorf: ronald.bachmann@rwi-essen.de [3]
Philipp Jäger is a researcher at the Department of Macroeconomics and Public Finance at the RWI: philipp.jaeger@rwi-essen.de [4]
Robin Jessen is a researcher at the Department of Macroeconomics and Public Finance at the RWI: robin.jessen@rwi-essen.de [5]
Eoin Drea is Senior Research Officer at The Wilfried Martens Centre for European Studies: ed@martenscentre.eu [6]
For more information please contact Eleftheria Katsi, Communications and Press Assistant: ek@martenscentre.eu [7]
Links:
[1] https://www.martenscentre.eu/wp-content/uploads/2021/05/Me-Myself-and-I.pdf
[2] https://www.martenscentre.eu/
[3] mailto:ronald.bachmann@rwi-essen.de
[4] mailto:philipp.jaeger@rwi-essen.de
[5] mailto:robin.jessen@rwi-essen.de
[6] mailto:ed@martenscentre.eu
[7] mailto:ek@martenscentre.eu
[8] http://www.martenscentre.eu