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Finance Minister Proposes €25bn Tax Reform, Ends Spousal Splitting

4/23/2026

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Summary

Story summary

Finance Minister Lars Klingbeil proposes ending joint taxation for married couples and replacing spousal tax splitting with a flexible tax-free income allocation model.
The ministry estimates spousal tax splitting costs the state up to €25 billion annually.
Critics say the system discourages women from working full-time.
CDU youth leader Johannes Winkel supports the reform and calls for tax relief for couples with child-raising hardships.

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Story summary

Finance Minister Lars Klingbeil proposes ending joint taxation for married couples and replacing spousal tax splitting with a flexible tax-free income allocation model.
The ministry estimates spousal tax splitting costs the state up to €25 billion annually.
Critics say the system discourages women from working full-time.
CDU youth leader Johannes Winkel supports the reform and calls for tax relief for couples with child-raising hardships.