News Archive

Inequality

Regional Income Inequality in Germany

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EconPol Forum
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Income inequality has increased in Germany. A new analysis shows that in 1998, the richest 10 percent of taxpayers earned 33.8 percent of total income. In 2016, that figure rose to 37.2 percent. Over the same period, the poorest 50 percent’s share of income fell from 19.3 percent to 15.9 percent. Differences in income within municipalities account for more than 95 percent of national inequality. On average, incomes in municipalities in western Germany are less equally distributed than in eastern Germany. Moreover, there are also differences between different cities.

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Schattenwirtschaft

How to Incentivize Tax Compliance when Households Demand Services?

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EconPol Forum
| News

Tax relief for home maintenance services is not an effective means of tackling tax evasion. In Germany, it would cost the government a great deal of money while only marginally improving tax compliance. This is the finding of a survey of just under 2,000 private households in Germany. In total, 55 percent of respondents say that they would request an official invoice even if this didn’t entitle them to tax relief.

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