The parliamentary group leader says that people with very small incomes would not be relieved at all because they did not pay any income tax below the basic tax-free allowance.
(Photo: IMAGO/Future Image)
Berlin Federal Finance Minister Christian Lindner is presenting in Berlin today how he intends to cushion high inflation for the public. A so-called inflation compensation law is planned for this, which, according to information from the German Press Agency from ministry circles, provides for higher child benefits and a tax reduction. The basic allowance is to be increased, i.e. the income up to which no tax has to be paid.
However, there is already widespread criticism of the plans: in absolute terms, top earners benefited more from Lindner’s relief than low earners. The Greens in the Bundestag therefore consider the plans to be socially unbalanced.
“High and highest income groups would receive more than three times as much as people with low incomes, who actually need the relief most urgently,” said parliamentary group leader Andreas Audretsch. In addition, people with very small incomes would not be relieved at all because they paid no income tax below the basic allowance.
The financial policy spokeswoman, Katharina Beck, made a similar statement. “It would be the other way around: strong shoulders would have to carry more than low-income ones and not be disproportionately relieved,” she told the editorial network Germany (RND).
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Berlin’s Governing Mayor Franziska Giffey has also spoken out against tax cuts and an increase in child benefit. “The question is whether – if you do more and more of the same thing – that will help in places where people need help,” said the SPD politician on Tuesday on the Welt television station.
“If I make another child benefit increase, then that’s nice for those who get it. But again you don’t have the older people with you, the pensioners, you don’t have the students with you either.”
Instead, Giffey pleads for the successor solution to the nine-euro ticket
Instead, Giffey pleaded for a successor solution to the nine-euro ticket. It was a great success and really relieved a lot of people. She contradicted Federal Finance Minister Christian Lindner (FDP), who had confirmed his rejection of an extension on Tuesday.
The Paritätischer Wohlfahrtsverband also criticized the child benefit plans: “Anyone who really wants to relieve families can’t deal with silly amounts.” An increase of at least ten percent, i.e. around 22 euros, would be appropriate. The tax plans would mainly benefit higher income groups, which is why the wrong priorities would be set here. The already blatant inequality in Germany could become even greater.
The German Trade Union Confederation (DGB) also rejects Lindner’s proposals. “Christian Lindner’s tax concept falls far short,” said DGB board member Stefan Körzell on Wednesday of the German Press Agency in Berlin. For sufficient relief for small and medium-sized incomes, the basic allowance would have to increase to 12-800 euros. “Instead, top earners and the rich benefit, although they have far fewer problems coping with the current price increases,” criticized Körzell.
From the point of view of the DGB, the elimination of the cold progression alone is not the key to more tax justice, as Körzell emphasized.
Körzell, on the other hand, said: “Tax relief for the general public would now be important.” He referred to a DGB concept, which he said would make 95 percent of households better off. The core concern for financing: “Top earners and the wealthy must contribute more to tax revenue,” said Körzell. Lindner does not provide for this.
In fact, Lindner’s plans have a greater percentage effect on low incomes, but in absolute figures people with high incomes benefit more clearly. A taxpayer with taxable income of 20,000 euros is to be relieved of 115 euros. With an income of 60,000 euros, the relief according to figures from the Ministry of Finance is already 471 euros. With even higher incomes, they remain stable at 479 euros and do not rise any further.
The Federal Minister of Finance wants to relieve taxpayers.
(Photo: dpa)
FDP General Secretary Bijan Djir-Sarai dismissed the Greens’ criticism as unfounded. The adjustment aims at lower and middle incomes and lowers “the tax burden of the hard-working middle”. The relief amount is capped for top earners. “The relief is fair and necessary so that people benefit from a wage or salary increase despite the high inflation and do not have to pay more through a higher tax burden,” said Djir-Sarai.
More: Up to 2000 euros for families – who would benefit from Lindner’s tax proposal