Automatic Income Tax Refunds to Relieve Low Incomes
Abstract Germany is one of more than 30 countries worldwide where employees are exempt from the obligation of filing a tax return. While this optional assessment relieves one of the burden of filing a return, it has individual and distributional costs because non-filers often pay too much income tax...
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| Format: | Article |
| Language: | deu |
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Sciendo
2021-12-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-021-3067-2 |
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| _version_ | 1832572619727044608 |
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| author | Tobias Hauck Luisa Wallossek |
| author_facet | Tobias Hauck Luisa Wallossek |
| author_sort | Tobias Hauck |
| collection | DOAJ |
| description | Abstract Germany is one of more than 30 countries worldwide where employees are exempt from the obligation of filing a tax return. While this optional assessment relieves one of the burden of filing a return, it has individual and distributional costs because non-filers often pay too much income tax. This excess withholding leads to considerable deviations of the effective tax burden from the tax schedule, especially in low-income brackets and particularly for employees with gross wages below the basic allowance. The resulting additional tax revenue amounted to at least 949 million euro in 2014 alone. An automatic refund of this excess withholding would especially relieve low incomes. |
| format | Article |
| id | doaj-art-63b67a2ff36a4d20882cb699acb678f8 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2021-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-63b67a2ff36a4d20882cb699acb678f82025-02-02T09:07:15ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-12-011011295695910.1007/s10273-021-3067-2Automatic Income Tax Refunds to Relieve Low IncomesTobias Hauck0Luisa Wallossek1Microeconomic Determinants of Labor Productivity, Ludwig-Maximilians-Universität MünchenVolkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität MünchenAbstract Germany is one of more than 30 countries worldwide where employees are exempt from the obligation of filing a tax return. While this optional assessment relieves one of the burden of filing a return, it has individual and distributional costs because non-filers often pay too much income tax. This excess withholding leads to considerable deviations of the effective tax burden from the tax schedule, especially in low-income brackets and particularly for employees with gross wages below the basic allowance. The resulting additional tax revenue amounted to at least 949 million euro in 2014 alone. An automatic refund of this excess withholding would especially relieve low incomes.https://doi.org/10.1007/s10273-021-3067-2 |
| spellingShingle | Tobias Hauck Luisa Wallossek Automatic Income Tax Refunds to Relieve Low Incomes Wirtschaftsdienst |
| title | Automatic Income Tax Refunds to Relieve Low Incomes |
| title_full | Automatic Income Tax Refunds to Relieve Low Incomes |
| title_fullStr | Automatic Income Tax Refunds to Relieve Low Incomes |
| title_full_unstemmed | Automatic Income Tax Refunds to Relieve Low Incomes |
| title_short | Automatic Income Tax Refunds to Relieve Low Incomes |
| title_sort | automatic income tax refunds to relieve low incomes |
| url | https://doi.org/10.1007/s10273-021-3067-2 |
| work_keys_str_mv | AT tobiashauck automaticincometaxrefundstorelievelowincomes AT luisawallossek automaticincometaxrefundstorelievelowincomes |