This debate reflects broader political conflicts over fiscal policy and support for families, with the SPD pushing for reform and the Union resisting.

Critics warn that eliminating the splitting could significantly increase the tax burden for families, with some facing up to 20,000 euros more annually, marking it as potentially the largest tax increase in Germany's history.

The SPD in Germany is proposing to abolish the Ehegatten-Splitting (spousal splitting) tax policy, arguing it is outdated and reinforces gender stereotypes by favoring single-income marriages.

Currently, German law allows married couples to file jointly and split their income for tax benefits, a practice that the SPD seeks to reform, citing the need to modernize the tax system.

The Union, including the CSU, opposes this proposal, warning it could lead to higher taxes for families and emphasizing the constitutional basis for the current splitting practice.

The Union references a 1957 Federal Constitutional Court decision that upheld the legality of spouse splitting, though a 2013 ruling indicated potential future changes, especially concerning same-sex partnerships.

The CDU/CSU argue that the splitting aligns with the principle of equal taxation for spouses and oppose the reform, citing legal rulings and the support of the current system.

The SPD criticizes the benefit for creating negative incentives for women to work full-time, but the Union counters with statistics showing most marriages are dual earners and that the current rule does not favor only single-income marriages.

While SPD's Lars Klingbeil previously supported reform, the current coalition government does not plan immediate changes, though the Finance Ministry remains open to examining potential simplifications.

This ongoing debate highlights tensions in Germany between social equality initiatives and fiscal considerations, with strong partisan divides.