Reduction of income tax

A temporary reduction in the income tax rate. This measure was proposed primarily to deal with the financial crisis that arose in the wake of the subprime crisis in 2007 and to create more demand in the short term. – However, this is countered by the fact that – almost half of private households in Germany are not assessed for income tax and – (in 2010) five percent of the highest earners contributed almost half of the income tax revenue. Experience shows, however, that a reduction in the tax burden for the upper income earners hardly leads to increased consumption. Meanwhile, the income of the poorer half of private households not assessed for income tax would not change as a result of such a measure in the first place.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/