Tax Planning of Married Couples and Intra-Household Income Inequality

Beitrag in einer Fachzeitschrift
(Originalarbeit)


Details zur Publikation

Autorinnen und Autoren: Büttner T, Erbe K, Grimm V
Zeitschrift: Journal of Public Economics
Jahr der Veröffentlichung: 2019
ISSN: 0047-2727
Sprache: Englisch


Abstract

This paper examines tax planning of married couples under separate taxation. It shows that concerns about the intra-household income distribution prevent couples from minimizing tax payments. The empirical analysis exploits a specific feature of the German tax system, which allows married couples to save taxes by deviating from the default symmetric payroll-tax treatment and assigning favorable tax treatment to the primary earner and unfavorable tax treatment to the secondary earner. Based on a representative random sample of individual tax files, we find that a couple is less likely to choose the tax-minimizing treatment if tax planning is associated with a larger decline of the net-of-tax income of the secondary earner. This applies regardless of whether the husband or the wife is the main earner. However, couples where the wife is the main earner are generally more reluctant to assign the more favorable tax treatment to the wife.


FAU-Autorinnen und Autoren / FAU-Herausgeberinnen und Herausgeber

Büttner, Thiess Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Finanzwissenschaft
Erbe, Katharina
Lehrstuhl für Volkswirtschaftslehre, insbesondere Finanzwissenschaft
Grimm, Veronika Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie


Forschungsbereiche

Steuern und Steuerpolitik
Forschungsschwerpunkt einer Fakultät: Fachbereich Wirtschafts- und Sozialwissenschaften


Zitierweisen

APA:
Büttner, T., Erbe, K., & Grimm, V. (2019). Tax Planning of Married Couples and Intra-Household Income Inequality. Journal of Public Economics.

MLA:
Büttner, Thiess, Katharina Erbe, and Veronika Grimm. "Tax Planning of Married Couples and Intra-Household Income Inequality." Journal of Public Economics (2019).

BibTeX: 

Zuletzt aktualisiert 2019-22-07 um 15:31