Heimliche Änderungen der Steuerbelastung vermeiden
The article shows that the current practice of adjusting income tax rates to inflation in Germany leads to an increasing tax burden when real wages rise. Moreover, it does not take into account that increases in consumer prices vary along the income distribution. We propose to automatically adjust income tax rates based on wage growth and income group-specific price changes.
Jessen, R. and T. Schmidt (2023), Heimliche Änderungen der Steuerbelastung vermeiden. ifo Schnelldienst, 76, 2, 21-23