German politician calls spousal tax splitting debate 'one-sided'

Alexander Hoffmann, leader of the CSU state group in Bavaria, has criticized the public debate surrounding Germany's "Ehegattensplitting" (spousal tax splitting) system, calling it "one-sided." Hoffmann asserted that abolishing this tax benefit would effectively amount to a tax hike, a move explicitly excluded from the current coalition agreement.

Speaking on the ZDF program "Berlin direkt," Hoffmann emphasized the societal role of marriage. "People who marry have a duty of support and care for each other and thus relieve the state," he stated. He argued that Ehegattensplitting is a "viable instrument" that the government should not tamper with. Hoffmann suggested that without this benefit, couples might fall into a "community of need" for citizen's benefits, implying the state could provide some relief through the existing tax system.

His comments come as the German federal government plans to introduce a significant reform package before the parliamentary summer recess. This package is intended to address various issues, including income tax, the labor market, pensions, and bureaucracy reduction. Hoffmann's defense of the spousal tax splitting system positions him against recent proposals from economic researchers.

Earlier, economists had suggested limiting the benefits of Ehegattensplitting. They argued in an open letter to Chancellor Friedrich Merz and Vice Chancellor Lars Klingbeil that the current system disproportionately favors partnerships where one spouse earns significantly more while the other works little or not at all. Given Germany's current labor and skilled worker shortages, the researchers proposed maintaining the spousal adjustment but capping the financial advantage it provides, suggesting it is fiscally irresponsible to leave earning potential untapped.