Record tax revenue: Schmalkalden benefits from wage tax billions!

Record tax revenue: Schmalkalden benefits from wage tax billions!

Schmalkalden, Deutschland - In recent years, wage and income tax (LEK) has taken a central place in the financial architecture of German cities. The high income from this tax type is very popular, especially in municipalities such as Schmalkalden, Steinbach-Hallenberg and Brotterode-Trusetal. According to an article by insuedthueringen.de Well -paid employees, such as professional athletes, are responsible for this development. They ensure that the municipalities as well as the federal government and the federal state benefit from the tax revenue.

But why are these income so important? Wage and income tax is one of the most profitable tax types in Germany. In 2021, around 291 billion euros were received, such as bpb.de . This is also reflected in the distribution of tax revenue, where the wage and assessed income tax is at the top.

importance of wage and income tax

This type of tax not only offers financing for public expenses, it also enables important analyzes and calculations on the effects of tax law changes. According to the Statistics of the Federal Statistical Office , the income tax statistics collect numerous data. These contain registered wage tax amounts, deducted amounts and the number of employees, which is essential for the further development of the tax system.

The results of wage and income tax statistics flow into numerous reports, including the poverty and wealth report and the report on the situation of the free professions. This shows how tight tax systems are connected to the social situation in Germany. One example is the increasing tax burden on pensions that steadily increases due to downstream taxation.

A look at the numbers

A closer look at the tax revenue reveals the importance of wage tax for public budgets. In 2021, 218 billion euros were paid to wage tax and 72 billion euros on the assessed income tax. There were total tax revenue of around 830 billion euros, with the largest proportion to benefit from the federal states, the federal government and the municipalities. The federal states received 355 billion euros, the federal government 314 billion euros and the municipalities 125 billion euros.

• wage tax: 218 billion euros
• income tax: 72 billion euros
• VAT: 250 billion euros

With these clear numbers it becomes clear that wage and income tax not only represents an important source of income, but also plays an important role in the financing of public services and infrastructure. And while we continue to benefit from the positive effects, we should always be aware of how important an agile and fair tax policy is for the future.