In the coalition dispute over savings in parental allowance, SPD chairman Lars Klingbeil proposes instead the abolition of spouse splitting for new marriages. “We’re finally getting rid of spouse splitting. This would put an end to the antiquated tax model that favors the classic distribution of roles between men and women. And the state would save money,” said Klingbeil the editorial network Germany.
Spouse splitting describes the procedure according to which married couples and life partnerships are taxed who do not choose individual assessment. The joint income is halved, the income tax due is calculated and the tax liability is then doubled. This is particularly useful for couples where one earns a lot and the other a little. According to the Federal Agency for Civic Education, this will cost the state 20 billion euros a year in 2020.
Klingbeil said: “I’m in favor of higher income shouldering more and more responsibility. But questions about distribution are clarified through tax policy, not through parental allowance,” said Klingbeil. The parental allowance is not a social benefit, but should motivate men to take on more responsibility in the family.
Couples whose joint taxable income is less than 300,000 euros have received parental allowance. As part of the budget planning for the coming year and the cuts in spending to limit debt pushed by Federal Finance Minister Christian Lindner (FDP), the traffic light coalition is planning to lower the limit to 150,000 euros. There is controversy about this.