Many petitions over the years have asked Luxembourg's tax system to be reviewed. One of the biggest motives: the large tax wedge between single and married couples. But why is there a separate system in place between the two categories and how does it work? What kind of reform would have to take place--if at all--to satisfy everyone?

The tax system in Luxembourg distinguishes married and single people—this is a vestige from the German occupation. In this system, singles are considered able to pay the full tax, whereas couples see their revenue added up and are then taxed on the average. For more traditional couples—where one partner doesn’t work or works parttime—this can be very advantageous. When a couple consists of people earning the same wages, it doesn’t really do much—if you consider the tax only.

Reforms have been suggested by various social partners and political parties—including the current government coalition of DP, déi Gréng and LSAP—but promises were shelved earlier in 2023 by finance minister Yuriko Backes (DP), who proposed tax credits instead. Is a reform then not in the cards at all? Is it even possible to even the wedge between the different types of households at all?

That's what we're talking about on this week's episode of Whine and Shine. Ardacan Keten, a French worker in Luxembourg who collected more than 10,000 signatures for a petition on reviewing the taxation formula for singles, and Fatima Chaouche, a Uni.lu lecturer and expert on individual taxation, share their knowledge on this topic.