Germany is being urged to increase the personal income tax bands to keep pace with inflation following estimates that a sizeable amount of tax will be collected as a result of the effects of inflation rather than real increases in individual income. These backdoor tax rises include the process known as bracket creep under which more taxpayers earn income above the threshold to higher rates of tax owing to the effects of inflation. If the income tax thresholds are not raised in line with inflation more tax is therefore collected in this way.
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France- President Promises to Push Through Tax Cuts
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