Citizen-oriented income tax: Expert commission of the Federal Ministry of Finance is developing proposals for simpler tax law

Citizen-oriented income tax: Expert commission of the Federal Ministry of Finance is developing proposals for simpler tax law

According to a report by www.welt.de, the Federal Ministry of Finance has set up an expert commission called “Citizen-oriented Income Tax” to develop proposals for simplifying tax law. The commission, consisting of 13 tax experts from various institutions and associations, will work until summer next year on solutions to create a less complex and less bureaucratic tax law. Finance State Secretary Katja Hessel emphasized that a modernization of tax law is necessary as this could have an impact on the state's ability to act.

The possible effects of this project are diverse. On the one hand, higher flat rates and allowances could reduce the need for complex individual statements and thus make tax returns easier and faster. This would also counteract the shortage of skilled workers in tax offices and tax advice, as fewer staff are required. Another possibility for simplifying tax law would be for taxpayers to determine their tax liability themselves, similar to sales tax. However, this would require stricter controls and higher sanctions for false statements.

Another aspect to be discussed by the expert commission concerns pensioners who have to submit a tax return even though their statutory pension is their only income. Here, direct taxation of the pension when it is paid out could provide relief for everyone involved. Finance State Secretary Hessel also emphasizes that in the course of simplifying tax law, it will also be necessary to think about reducing tax relief in order to compensate for the financial losses for the state. Company car taxation and the promotion of e-mobility are mentioned as possible candidates for abolishing benefits.

It remains to be seen how the expert commission's discussions will go and what specific proposals will ultimately be developed. However, simplifying tax law would have the potential to make tax returns easier and faster for citizens and companies and thus improve the state's ability to act.

Source: According to a report from www.welt.de,