Because of purely inflation-related tax increases, many taxpayers have less money in their pockets this year.
(Photo: imago images / Future Image)
What else did Christian Lindner promise? The FDP will not be able to lower taxes in the traffic light government. But thanks to the Liberals, there won’t be any tax increases either. Well: that’s not entirely true.
Because of purely inflation-related tax increases, many taxpayers have less money in their pockets this year. Because the traffic light failed or knowingly ignored in the coalition negotiations to adjust the tax rates for 2022 to the high inflation rate in 2021.
It’s not about a huge amount, but the symbolic effect is clear: the taxpayer ranks at the bottom of the political priority list, at the very end of the food chain.
Before each election, all parties lure with exonerations. After the election it was unfortunately, unfortunately not possible to agree on it again. As if that weren’t nuisance enough, there are now additional burdens through the back door.
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Because the phenomenon of “creeping tax increases” – called “cold progression” in technical jargon – is experiencing a comeback with rising inflation rates. A decade ago, the state stole billions from taxpayers. After public pressure, the tax authorities finally compensated for the creeping tax increases.
That wasn’t a big deal either. Inflation was low and easy to predict, and the relief was manageable. With the new rise in prices, that is changing.
Cold progression is not mentioned in the coalition agreement
But whether the money hamsters from the traffic lights are actually ready to fully relieve the taxpayers of the cold progression has by no means been determined. In the coalition agreement there is no mention of the dismantling of the cold progression. While the FDP was right to press for it, the SPD and the Greens were not ready.
A tariff on wheels, as demanded by the FDP and in which the tax tariffs are automatically adjusted to inflation at the end of each year, is the only sure protection of the taxpayer against such creeping tax increases. Such a reform would be a good project for the new Finance Minister Lindner. Coalition agreement or not.
More: Energy prices could require steps against inflation, says ECB director Schnabel