Will the Tax Reform of 2015-16 Offset the Cumulative Effect of Bracket Creep?

  • Michael Christl
  • Dénes Kucsera

The additional burden borne by the payers of wage taxes through bracket creep is estimated to equal € 2.87 billion in 2015; across the period between the tax reform of 2009 and that of 2016 it would total € 10.77 billion. The tax relief provided by the tax reform of 2016 will thus overcompensate the effect of bracket creep in 2016, but not the overall effect accumulated between 2009 and 2015.

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