Cold progression costs taxpayers 41 billion euros

Berlin The citizens suffer from the high inflation, and twice over. Not only gas, groceries or petrol will become more expensive, the citizens will have to pay even higher taxes because of the high price increases.

A new tax report by the federal government shows how much inflation-driven tax increases are currently burdening the 35.5 million taxpayers. According to this, taxpayers will be burdened with a total of 41.4 billion euros this year and next by the so-called cold progression.

Cold progression is a kind of creeping tax increase: if wages rise less than inflation, you still have to pay high taxes but can afford less. Especially in times of high inflation, the cold progression puts a heavy burden on taxpayers.

Specifically, a taxpayer will have to pay an average of EUR 659 in taxes this year and EUR 606 next year, according to the report. First “T-Online” reported on the figures.