The gross wage income distributions for different groups of taxpayers in 2004 are used to derive wage income distributions for 2007–2013. By applying the rules of income taxation, wage income tax revenues are deduced. Given the tax rate structure introduced in 2007, the average tax rates and...

The structure of income taxation in Germany implies that the marginal and the average tax rates will rise significantly in the next years - even if the increase of nominal incomes is modest. The elasticity of the wage income tax revenues with respect to gross wages amounts to about 1.86,...