If you earn a lot of money, you have to pay a lot of money to the tax office. According to a survey, experts advocate a higher tax rate for the wealthy. At what income should it apply?
According to a survey, the majority of German economists are in favor of a higher tax on particularly high incomes. In a recent survey of 153 professors of economics by the Munich Ifo Institute, 56 percent of those surveyed were in favor of a higher tax rate for the wealthy on incomes of 278,000 euros or more per year. On the other hand, a narrow majority rejects a temporary increase in the top tax rate, which is currently already due for taxable annual income of around EUR 59,000.
Specifically, 39 percent of the experts surveyed were in favor of a permanent increase in the tax rate for the wealthy above the currently applicable 45 percent. More than 20 percent were even in favor of going up more than 3 percentage points permanently. About 17 percent were in favor of a temporary increase – mostly in the range of 1 to 3 percentage points. 32 percent were in favor of leaving the wealth tax rate untouched, twelve percent were in favor of its complete abolition.
Vote against energy solos for top earners
The option of a temporary increase in the top tax rate from the current 42 percent from around 59,000 euros, brought into play by the Council of Economic Experts, was rejected by 52 percent of those surveyed and supported by 46 percent. “Contrary to what the name suggests, an increase in the top tax rate would not only affect those earning very high incomes, but would also put a particular strain on the middle class,” says Ifo researcher Marcel Hauler.
However, 92 percent of the experts are calling for the income limit above which the top tax rate applies to be raised. The area between 70,000 and 80,000 euros was mentioned most frequently with more than 31 percent. This is followed by the range of 80,000 and 100,000 euros with 28 percent. The income limit is to rise anyway, but not as much as advocated by the majority of experts. 56 percent rejected an energy solo for top earners, 40 percent were in favor of it.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
