CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.

German Labor Tax Burden Too High, IMF Says

Friday, May 19, 2017

Germany should reduce its "large and increasing tax burden on labor" to boost employment in the country, the International Monetary Fund (IMF) has said.

It said that better than expected tax revenues will give the country "space" to implement the reform.

A recent study by the Cologne Institute for Economic Research (IW) into the distribution of the tax burden in Germany found that middle-income taxpayers pay almost half their income in taxes.

The study found that, in general, those with the broadest shoulders bear the highest burden, with the top 10 percent of households in terms of income contributing almost half of total income tax revenue.