Marital Splitting: Germany Needs More Equality for Economic Reasons

Germany faces ongoing discussions about stimulating economic growth, yet a crucial element remains largely overlooked: achieving greater gender equality. Experts argue that a fair women's policy, beginning with reforms to the "Ehegattensplitting" (marital splitting) tax system, is essential not only for justice but also for the fundamental functioning of democracy and a social market economy.

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No country can afford to forgo the potential of half its population – certainly not Germany in times of demographic change, skilled labor shortages, and transformation.

Eight initiators recently published an open letter to the German Chancellor and Vice-Chancellor, proposing a reform of the marital splitting system. This proposal, co-signed by numerous academics, suggests a limited real splitting system. This approach would continue to recognize marriage for tax purposes but cap the unlimited advantages currently enjoyed by couples with vastly unequal incomes. The intention is to redirect these financial benefits more towards families with children.

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The proposal for reforming marital splitting is pragmatic and incorporates as many positions as possible.

The reform seeks to achieve three key objectives: honoring marriage and family, enhancing child support, and strengthening incentives for women's workforce participation. Proponents argue that the current debate on gender equality is often framed morally, dictating how women should live. Instead, they advocate for policies that create freedom by removing state-imposed barriers. These barriers currently push many women into part-time work, mini-jobs, financial dependency, and ultimately, old-age poverty.

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Good equality policy creates freedom. It does not take away the decision from anyone on how to organize family and work.

Those who claim women "voluntarily" work less often ignore the constraints they face. Limited access to childcare, inadequate all-day schooling, the preferential treatment of mini-jobs, and a tax system that penalizes additional work through marital splitting all contribute to limiting women's choices. The proposed reform aims to dismantle these structural impediments, fostering greater economic participation and independence for women, which in turn benefits the broader German economy.

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Those who claim many women work 'voluntarily' less ignore how unfree decisions become when childcare places are missing, all-day schools do not function, mini-jobs are privileged, marital splitting punishes extra work, and contribution-free co-insurance...