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The potential effects for families of introducing the French fiscal system in Germany

Honekamp, Ivonne and Schwarze, Johannes (2010): The potential effects for families of introducing the French fiscal system in Germany.

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Abstract

In Germany 1,41 children are born per women which results in a much lower birth-rate than in France. Time and again it has been discussed if a family orientated tax- and transfer system can influence birth rates. In Germany, France is often designated as a role model. Based on a model calculation this contribution shows how disposable income of German families would change, if the French tax- and transfer system were introduced. It will be distinguished among different family and employment compositions. One of the results is that families with only one child would be financially worth of under the French system while families with more children would benefit.

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