155. 50% Constitutional Limit on Total Taxation?

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In article no. 98, we reported on constitutional challenges to the German income tax based on language contained in a 1995 ruling of the Federal Constitutional Court to the effect that the total tax burden on an individual could not constitutionally exceed roughly half of the individual's income (BVerfG BStBl II 1995, 655 - 22 June 1995).

On an appeal taken from denial of a request to stay collection of tax assessed pending resolution of this issue by the courts, the Federal Tax Court has held that the June 1995 ruling of the Federal Constitutional Court does not create sufficient doubt as to the constitutionality of the income tax laws as to justify a stay of collection, at least not with respect to the income tax in years through 1996 (DB 1998, 1798). Noting that the June 1995 ruling of the Federal Constitutional Court,