The Minister of Finance speaks of a “tax increase by omission”, which he wants to avert.
(Photo: Reuters)
Berlin Finance Minister Christian Lindner wants to relieve the broad middle of society with tax plans to compensate for inflation. That said the FDP politician on Wednesday in Berlin. 48 million people would benefit. The average relief would be 192 euros. Lindner spoke of a tax cut of more than ten billion euros.
Above all, the finance minister wants to compensate for the cold progression. This is a type of creeping tax increase, when salary increases are eaten up by inflation but still result in higher taxation. Higher taxes then apply, although purchasing power does not increase in real terms.
“People are worried about inflation,” Lindner said. The economic situation is fragile, which is why action must be taken. Otherwise there would be a risk of tax increases on January 1, 2023, which should now be neutralized. The state should not benefit from inflation. His project should benefit the broad middle of the population. The rates for the wealthy tax would therefore not be changed.
Lindner spoke of a “tax increase through omission”, which he wanted to avert. In addition to an adjustment of the benchmarks in the income tax rate, the finance minister plans to increase child benefit and the child allowance.
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More: Up to 2000 euros for families – who would benefit from Lindner’s tax proposal