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