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iza-institute-of-labor-economics / gettsim

The GErman Taxes and Transfers SIMulator
https://gettsim.readthedocs.io/
GNU Affero General Public License v3.0
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Favorability Check with capital income tax #81

Open Eric-Sommer opened 5 years ago

Eric-Sommer commented 5 years ago

Current and desired situation

Since 2009, capital income is taxed with a flat rate of 25% (plus soli) (Abgeltungssteuer). In principle, tax authorities are supposed to tax capital income with a lower rate if the personal tax rate of all incomes would be lower than 25%. In order to do this, taxpayers have to claim their capital income on a separate sheet. Whether this happens on a regular basis is unclear.

Proposed implementation

If we want to implement this, we need to extend tb["zve_list"] with the taxable income definitions including capital income, i.e. zve_abg_nokfb and zve_abg_kfb. Renaming abg to e.g. cap might also make sense here.

Considered alternatives

leave as is because it's not relevant.

hmgaudecker commented 5 years ago

It is good to keep this in mind, but I would indeed think this is very rare so it would end up being meaningful in quantitative terms. I would think that we have more pressing things to work on at present.