Taxpayers' association: More than half of income goes to public coffers
2024 represents the income tax rate for an average working household at 52.6 percent, stated Taxpayers' Association President Reiner Holznagel during the presentation of the report. This consideration includes taxes of all kinds, social insurance contributions, and broadcasting fees, which the Taxpayers' Association considers as "quasi-taxes."
Single households are therefore overburdened with approximately 53.6 percent - their "Taxpayer Appreciation Day" falls on July 15. For multi-person households, this day falls on July 10. The burden for multi-person households is 52.3 percent, which is slightly lower in comparison.
Compared to the previous year, the burden has decreased minimally by 0.1 percentage points - the "Appreciation Day" was still on July 12 in 2023. According to Holznagel, this could be attributed to the so-called Inflation Adjustment Law, which was intended to mitigate income losses caused by creeping tax increases, or "cold progression."
However, Holznagel criticized the tax and fee burden in Germany, stating, "We urgently need a profound and far-reaching discussion about our income tax rates, especially for the middle class." In addition, he suggested that Umsatzsteuersätze (sales tax rates) on all goods for daily needs, such as electricity and heating, should be reduced to seven percent. The burden rate should permanently remain below 50 percent.
The Taxpayers' Association in Germany is pushing for a reduction in Umsatzsteuersätze, specifically on essential items like electricity and heating, to alleviate the tax burden for taxpayers. More advocacy is needed to lower income tax rates, particularly for the middle class, according to Reiner Holznagel, the president of the Taxpayers' Association. With the current tax structure, single households in Germany face a tax burden of approximately 53.6%, which is the equivalent of their 'Taxpayers' Association: Taxpayers' Appreciation Day'. For multi-person households, the burden is slightly lower at 52.3%, but still high. The German government has made minor adjustments to the burden, reducing it by 0.1 percentage points, but the Taxpayers' Association believes these changes are insufficient. Cash registers across the country collect taxes, fees, and social insurance contributions, contributing to the overall tax and fee burden in Germany.
