According to a survey, the majority of German economists are in favor of a higher tax on particularly high incomes. In a survey conducted by the Munich Ifo Institute among 153 professors of economics, 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 spoke out in favor of a permanent increase in the wealth tax rate above the currently applicable 45 percent. More than 20 percent were even in favor of going up by more than three percentage points permanently. About 17 percent were in favor of a temporary increase – mostly in the range of one to three percentage points. 32 percent were in favor of leaving the wealth tax rate untouched, twelve percent were in favor of its complete abolition. 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 German 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 range between 70,000 and 80,000 euros was mentioned most frequently with more than 31 percent.
Ifo survey – economists for tax on the wealthy – economy
