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Martin Beznoska / Tobias Hentze IW-Trends No. 3 11. October 2016 The Effect of Demographic Transition on Tax Revenues in Germany
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The Effect of Demographic Transition on Tax Revenues in Germany
Martin Beznoska / Tobias Hentze IW-Trends No. 3 11. October 2016

The Effect of Demographic Transition on Tax Revenues in Germany

IW-Trends

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As a result of high net immigration, both Germany’s overall population and its workforce potential are currently growing. However, within a very few years this demographic trend will be reversed, leading to a decline in the population as a whole and especially in the number of those gainfully employed. The fall in income tax revenues resulting from a shrinking and ageing society will place a huge strain on government finances, an effect further enhanced by the shift of the tax burden from pension contributions to pension benefits. In 20 years’ time the annual price-adjusted revenue from income tax is simulated to be € 18 billion or almost 7 per cent lower than today.

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The Effect of Demographic Transition on Tax Revenues in Germany
Martin Beznoska / Tobias Hentze IW-Trends No. 3 11. October 2016

Martin Beznoska / Tobias Hentze: Die Wirkung des demografischen Wandels auf die Steuereinnahmen in Deutschland

IW-Trends

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Possible Developments in the Supply of Skilled Workers up to the Year 2040
Wido Geis-Thöne IW-Report No. 11 7. April 2021

Possible Developments in the Supply of Skilled Workers up to the Year 2040

The German labor market is on the verge of a fundamental upheaval. While the number of people in the labor force has risen steadily in recent decades, it is likely to drop significantly as soon as the baby boomers retire.

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Wido Geis-Thöne IW-Trends No. 1 8. February 2021

The Social Situation of Young People from Non-German-Speaking Families

An analysis of the microcensus shows that in 2017, around 2.4 million children and adolescents in Germany lived in non-German-speaking households. This corresponds to 17.7 per cent of all minors (under the age of eighteen) and 47.0 per cent of those with a ...

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