How fair is church tax?

Abstract

Church tax is a key source of funding for Germany’s major churches. Collected by the state and linked to income tax, it follows the principle of ability to pay. The funds finance not only religious work, but also education, social welfare and culture, thus easing the state’s burden. Yet the church tax is often questioned, especially with rising church exits, derogations like capping or special church tax, and tax deductibility. Alongside alternatives such as a culture tax or donation-based models, church tax is becoming increasingly difficult to justify.