The latest episode of the science podcast “Exzellent erklärt – Spitzenforschung für alle” provides insights into the research of the Cluster of Excellence ECONtribute of the Universitites Bonn and Cologne. Cluster member Felix Bierbrauer talks about the social and economic effects of the joint taxation of married couples in Germany.
The joint taxation of married couples is a tax procedure that has been discussed in Germany for decades. Since 1958, married couples and registered civil partnerships in Germany have been subject to it: the incomes of both partners are added together and then divided into two equal amounts. Income tax is then calculated on these “split” incomes. Put simply, the tax progression means that couples with unequal incomes are taxed more favorably, while couples with equal incomes benefit less. Is that fair? “As a scientist, you don’t make moral judgments,” says Felix Bierbrauer in in the podcast. Instead, what he does is examine the extent to which certain values have consequences for the design of the tax system.
Tax policy: gender equality or poverty reduction?
For example, the joint taxation of married couples can lead to a significant tax relief for a family if the couple consists of a full-time earner and a part-time worker. At the same time, it can, to a certain extent, cement traditional role models in which women more often work part-time and have fewer incentives to participate more actively in the labor market – which in turn affects their future pensions.
Would it therefore be better to abolish the joint taxation of married couples? Again, it depends on the tax policy objective. Felix Bierbrauer says: “Many of those who argue against the joint taxation of married couples, even for good reasons, are not aware that there is a conflict in tax policy between the goals of gender equality and poverty prevention”. Research shows that couples with low incomes often have only one earner – for example, because one partner has health problems or stays at home because of childcare. Abolishing the joint taxation of married couples would result in particular financial disadvantages for these households and could increase the risk of poverty. In the podcast, Felix Bierbrauer discusses how this effect could be avoided while still reforming the joint taxation of married couples.
Podcast explains cutting-edge research by Clusters of Excellence
In each episode, the science podcast “Exzellent erklärt” provides insights into one of the 57 research clusters funded under the Excellence Strategy of the German federal and state governments. The podcast reflects the research diversity of the Germany’s leading research institutions and Clusters of Excellence: from Africa Studies to Quantum Physics. In each episode, listeners can expect insights into the interdisciplinary work of one research network. The researchers of the clusters of excellence, funded by DFG talk to podcaster Larissa Vassilian about how they want to find scientifically sound answers to relevant topics of our time – for the society of tomorrow.
The new episode featuring ECONtribute on the topic of joint taxation of married couples can be found on all major portals such as Apple Podcasts or Spotify from Saturday, March 1, 2025.
ECONtribute was previously a guest on the podcast “Exzellent erklärt” in 2021. Back then, ECONtribute cluster members Pia Pinger and Matthias Sutter discussed the topic of educational equity and the role that parents play in this. Find out more here.