Rich people pay taxes

: Millionaire Tax: This is how much tax people pay with high incomes

Berlin - In the election campaign, the major parties advertise themselves with the promise of tax cuts. Both the CDU and the SPD want to relieve the Germans of 15 billion euros. To counter-finance the SPD wants to increase the top tax rate from 42 to 45 percent, the tax on the rich would rise from 45 to 48 percent. Chancellor Angela Merkel, on the other hand, has ruled out higher taxes for higher earners. How much taxes do the rich actually pay?

How much taxes do Germans pay?

The Federal Statistical Office counts a total of 39.8 million persons subject to income tax in Germany. They earned 1.4 trillion euros. The total wage and income tax amounts to 246 billion. These are the latest figures from 2013. Due to the long deadlines for tax assessment, they are only now available, according to statisticians.

Who pays the top tax rate?

The tax rate in Germany increases with increasing income. From a taxable annual income of 52,882 euros per year, the top tax rate of 42 percent was due in 2013. According to the Federal Statistical Office, it was paid by 2.1 million taxpayers.

Who pays wealth tax?

The three percent surcharge on the top tax rate is due from an income of 250,731 euros (jointly assessed persons: 501,462). A total of 79,200 people paid him in 2013, including 17,400 millionaires.

Who didn't pay taxes at all?

In 2013, the income of 9.6 million taxpayers was below 8131 euros. Up to this sum, the income remained tax-free, since the state is not allowed to tax the subsistence level according to the Federal Constitutional Court.

Do wealthy top and wealthy people pay tax on their entire income?

No. For example, those who earned 300,000 euros in 2013 would have the first 8,131 euros tax-free, as would the low-wage earner. For the first 40,000 euros, he paid as much tax as someone who only earned 40,000 euros. The top tax rate applied to him only for the sum between 52,883 and 250,731 euros. And the wealthy tax was only relevant for the sum between 250,732 and 300,000 euros, i.e. the 45 percent wealthy tax was only due for the difference of 49,268 euros. The three percent surcharge in this example is therefore 1478.04 euros.

What share do the wealthy pay?

Those who fell below the top tax rate in 2013 contributed 43 percent to total wage and income tax revenue. The proportion of those who fell under the tax on the rich was 11.5 percent. Together, both come to a share of 54.5 percent of wage and income tax.

Few pay more than half the taxes - is that fair?

In Germany, the richest ten percent of households recently paid around 60 percent of income tax. That sounds like a lot at first. However, among other things, the following should be considered:
First: The German tax system is progressive - those who earn more should also give more in percentage terms. Anyone who is just getting along well cannot give anything away. The unequal tax burden is therefore a consequence of the unequal distribution of income. In other words, if income were distributed equally, everyone would contribute equally to tax revenue.
Second: The top earners are often not employees, but self-employed and entrepreneurs, some of whom generate millions in sales. So here the income tax is a corporate tax in disguise.

Third, wage and income tax only makes up part of the total tax burden. Another part are indirect taxes such as VAT, which is due when shopping. Here everyone pays 19 percent, whether homeless or millionaire, whether child or adult. In terms of income, low-wage earners also pay a higher proportion of VAT because they have to spend a larger proportion of their budget on purchases.

The ten percent of the poorest households pay 20 percent of their income as indirect taxes, while the richest ten percent only pay eight percent, the DIW calculates. Overall, a household from the ten percent of the highest income group pays almost 25 percent of its income in taxes. This is only a little more than the ten percent of the poorest households (20 percent).