Berlin. The traffic light wants to abolish tax classes 3 and 5. Who this affects and who has more money left at the end of the month: the overview.
With a wedding, not only the marital status and often also the last name change, but also the Tax class. The spouses can decide between themselves who chooses tax class 3, 4 or 5. This choice has so far influenced which of the two ultimately gets more net of the gross. Because: By combining the two tax classes 3 and 5, the spouse with the higher income receives a disproportionately higher net amount. The spouse with the lower income, on the other hand, gets significantly less net income. Federal Finance Minister Christian Lindner (FDP) wants to abolish this injustice.
What is planned?
As a spokesman for the Ministry of Finance explained to this editorial team, the… Tax classes 3 and 5 be transferred to the factor method of tax class 4. The aim of the reform is that the tax-reducing effect of the splitting procedure should be taken into account when deducting monthly income tax for one’s own salary. The higher taxation in tax class 5 can thus be avoided. This is intended to achieve a fairer overall distribution of the wage tax burden based on the wages received.
What is the criticism of tax classes 3 and 5?
Federal Family Minister Lisa Paus (Greens) told this editorial team: “The reform of the tax brackets for married couples and registered life partners is a long overdue step to finally create more gender and performance equality in the tax system and thus advance economic equality for women.” In As a rule, women are paid less than their husbands, so they often end up in tax class 5 – they often have less left over. With the abolition of tax classes 3 and 5, those who earn more in the marriage should have a little less net Low-income earners a little more for that. “If the tax burden is distributed more fairly, millions of women will have more net income every month in the future,” Paus is certain.
Supporting the abolition of tax classes 3 and 5: Christian Lindner (FDP), Federal Minister of Finance, and Lisa Paus (Alliance 90/The Greens), Federal Minister for Family, Senior Citizens, Women and Youth. © DPA Images | Kay Nietfeld
Is there now overall less net of gross for spouses?
No. The bottom line is that after the reform there should be just as much left as there is today. But it should fairer become. The higher earner in the marriage will end up getting a little less, but the lower earner will get more.
Will spousal splitting also no longer apply?
No. As the spokesman for the Ministry of Finance explained, there will be the possibility of joint assessment Spousal splitting, keep giving. The tax class combination 4 and 4 remains. It is usually used when both spouses earn approximately the same amount. Here both spouses are treated for tax purposes as if they were single, which usually leads to a fair and balanced tax burden. But Family Minister Paus says: “For me, the planned reform of the transfer of tax classes 3 and 5 to tax class 4 with factor procedures also means the move towards the abolition of spousal splitting.”
When should the reform be completed?
Uncertain. In any case, the project is not new; the traffic light parties already agreed on it in the coalition agreement. When asked, a spokesman for the Ministry of Finance explained that work was underway to implement the project. We are currently in final discussions and votes. Nevertheless, it can lead to the abolition of both Tax brackets still take a while. In July last year, Christian Lindner told this editorial team that legislation could happen quickly. “But the federal states’ IT procedures will then take a few more years.”
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