Significant disagreement has emerged within German political circles regarding the future of the “Ehegatten-Splitting” – a system of tax calculation for married or registered partner couples. The Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), are firmly rejecting proposals from the Social Democratic Party (SPD) to abolish the practice.
The Ehegatten-Splitting system combines the income of married couples or registered partners, divides the total by two and calculates each partner’s individual income as if they were each earning half of the combined amount. This system often results in a lower overall tax burden, particularly when there’s a significant income disparity between the partners.
CSU General Secretary Martin Huber emphasized that eliminating the Ehegatten-Splitting would be “nothing more than a tax increase for families”. He cautioned that such discussions create uncertainty amongst citizens and could inadvertently empower more radical political forces.
The CDU’s spokesperson for financial policy, Fritz Güntzler, reinforced the Union’s commitment, stating that any alteration would be incompatible with an agreement with the SPD. Güntzler asserted that the CDU’s foundational program explicitly safeguards the Ehegatten-Splitting system and dismissed claims that it constitutes a preferential tax treatment. He argued that it reflects the shared financial responsibilities inherent in a marriage, viewing it as a matter of fairness.
Güntzler further highlighted that a prior ruling by the Federal Constitutional Court binds the Union, mandating equal tax treatment regardless of individual income. He maintained that the Ehegatten-Splitting system complies with this principle and an abolishment would negatively affect the financial well-being of millions of households.
The SPD’s attempts to modify the system are not unprecedented, but the CDU is criticizing the introduction of demands that haven’t been jointly agreed upon, suggesting the actions risk presenting a perception of disunity to the electorate.