Finance Minister Klingbeil Aims to Abolish Spousal Tax Splitting to Boost Labor Participation
Politics

Finance Minister Klingbeil Aims to Abolish Spousal Tax Splitting to Boost Labor Participation

Bundesfinanzminister Lars Klingbeil (SPD) appears poised to abolish the Ehegattensplitting, a claim reported by Bild’s Wednesday edition and said to stem from government sources. As part of the planned tax reform, the finance minister is pressing for the abandonment of the current splitting model. Klingbeil says the goal is to offer stronger incentives for spouses to take up employment or increase their working hours, thereby raising the overall labor supply and spurring economic recovery. The SPD campaigned for a reform of the Ehegattensplitting during the federal election, but significant factions within the governing coalition reject such a change.