This study aims at contributing to the ongoing debates on the bracket creep, whether Germany needs an integration of … inflation indexation into its personal income tax system in order to re-duce distortions of tax liabilities and additional tax … burdens. On the other hand, Germany has continuously flattened the personal income tax rates in the context of a series of tax …

under various inflation scenarios. We develop a tax micro-simulation model for the newly available Panel on Household … insurance contribution system with respect to the inflation rate, which contrasts with Immervoll (2005) who finds that fiscal … solely to Germany. Additionally, when we introduce the empirical evidence that capital income grows faster than non …

This paper studies the redistributive and revenue effects of bracket creep in Germany under various inflation scenarios … effect of the tax system with respect to the inflation rate, which contrasts Immervoll (2005) who finds that the fiscal drag … indexing the tax schedule in Germany. The rich tax required for fully financing the indexation can be sizable. Under our …