Bericht über die Wirkung der kalten Progression im Verlauf des Einkommensteuertarifs für die Jahre 2018 und 2019 (Dritter Steuerprogressionsbericht)

This report examines the effect of 'fiscal drag' on income tax rates in Germany for 2018 and 2019. Fiscal drag occurs when inflation pushes taxpayers into higher tax brackets, increasing their tax burden even if their real income hasn't changed. This analysis helps understand the fairness and efficiency of the tax system. The findings affect taxpayers, particularly those with middle incomes, and inform policymakers about potential adjustments to tax brackets and social benefits to mitigate the impact of inflation on disposable income.