Skip to comments.German lawmakers see scope to cut tax 'bracket creep' around 2016
Posted on 04/28/2014 10:42:19 AM PDT by Brad from Tennessee
BERLIN (Reuters) - Germany, flush with surging tax revenues and strong economic growth, could lower income taxes in 2016 by eliminating "bracket creep", according to a growing number of voices in Angela Merkel's right-left coalition.
Lawmakers from the chancellor's Christian Democrats and the centre-left Social Democrats (SPD) said there should be scope for doing away with a tax code rule that income tax brackets are not adjusted for inflation.
Unlike major economies such as the United States, Britain and France, thresholds in Germany's progressive tax system are not automatically adjusted - something the Organisation for Economic Cooperation and Development (OECD) has urged it to address via the introduction of index-linked tax brackets.
Critics complain the current system "picks wage-earners' pockets" by hoisting them into higher tax brackets as their earnings rise. But government budgets have long relied on the extra funds it brings - up to four billion euros a year. . .
(Excerpt) Read more at theguardian.com ...