VdK Calls for End of Spousal Tax Splitting Citing Outdated System

VdK Calls for End of Spousal Tax Splitting Citing Outdated System

Verena Bentele, the president of the VdK social association, considers the potential abolition of the spousal tax split to be overdue. She stated to the “Mediengruppe Bayern” newspapers that the current system favors married couples with wide income disparities, arguing that this undermines equality in the labor market and makes it difficult for women to achieve financial independence.

Bentele suggested that financial support for families with children should be tied to taking on family responsibilities rather than the formal status of marriage. Consequently, she proposed replacing the spousal split with a tax model for families that does not negatively affect women’s employment.

However, Bentele opposes eliminating the free supplementary coverage of spouses under health insurance. While acknowledging arguments about adding incentives for employed wives whose coverage depends on their partners, she insisted that family insurance is a core element of statutory health insurance and must remain untouched, especially for families with low and medium incomes. She warned that abolishing this benefit would result in a contribution rate hike for these families.

Furthermore, Bentele labeled a possible increase in the value-added tax as “extremely unsocial”. She contended that people with low and medium incomes, who spend their money on daily necessities rather than investments in stocks, would bear the brunt of this tax hike. According to the VdK president, raising the VAT is merely the easiest path for a government reluctant to undertake deep reforms and leaving significant revenue sources unused. Instead, she advocated for the fairest path, which she believes necessitates reforming the taxation of inheritances and wealth.