Bericht über die Wirkung der kalten Progression im Verlauf des Einkommensteuertarifs für die Jahre 2020 und 2021 (Vierter Steuerprogressionsbericht)

This report examines the effect of 'fiscal drag' on income tax rates in Germany for 2020 and 2021. Fiscal drag occurs when inflation pushes taxpayers into higher tax brackets, increasing their tax burden even if their real income hasn't changed. The report analyzes how this phenomenon impacts taxpayers and public finances. It provides insights for policymakers considering adjustments to the tax system to mitigate its effects.