What other relief would make sense?

Cabinet retreat Meseberg

The coalition politicians have announced further relief.

(Photo: dpa)

After the cabinet meeting at Meseberg Castle, it is clear that there will be a “precise, tailor-made” relief package, as Chancellor Olaf Scholz (SPD) put it. But he did not give any details. In any case, some Handelsblatt readers already have a variety of ideas.

For example, one reader advocates reducing the current sales tax on staple foods to zero percent: “This relieves the burden on low earners, families and social security recipients in particular, but at the same time on the entire population.” energies and present energetic renovations. Another reader also prefers the last point in particular, because it is a “long-term help” and Germany will become independent of fossil fuels more quickly.

In addition, others are in favor of a successor model for the nine-euro ticket or for one-off payments. But these should be based on the income of the citizens, says one reader. Another reader also finds that the measures should be aimed more at people with low and middle incomes.

Criticism is pouring down above all with regard to the planned gas levy. This must be “completely rethought and worked out cleanly,” writes one reader.

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One reader wonders whether the government will be able to adequately consider all interests despite limited resources. Another reader hopes “that the government, as it puts together new relief packages for the next three months, does not forget that our future consists of much more than just this time horizon”.

We have put together a selection for you from the various letters from the Handelsblatt readership.

Squaring the circle?

“As a citizen, I would like a relief for the basic consumption of energy – unbureaucratic and simple – so that, for example, pensioners with low incomes do not freeze.

As a taxpayer, I would like to see the cold progression abolished so that increases in income (or energy allowances) do not primarily increase government revenue.

As an entrepreneur, I would like to see measures to curb inflation and secure purchasing power so that private consumption stabilizes domestic demand.

As a voter, I wish for a government that steers us through the current crises with foresight and ensures that “made in Germany” will continue to be a seal of quality in the future.

I hope our government manages to adequately consider all interests despite limited resources, even if that is probably tantamount to squaring the circle!”
Iris Wilhelm

Just tranquilizer pills

“All the relief packages are only short-acting sedative pills for the people, they help some citizens for a little moment and then they fizzle out.

Why doesn’t the government, for example, take the money that is now being squandered with a lot of bureaucracy and pass it on to the energy companies and save us the unspeakable gas surcharge instead? Then the small companies that have not yet been blessed with any relief would at least get a little help.

The middle class, which keeps the shop running with its small shops, has been forgotten in all previous measures, just like the many hard-working people who do their work every day and at the end of the month can just pay their living expenses, but for small ones extra pleasure not have a euro to spare.”
Cornelia Gunther

>> Read about this: Government announces “massive” relief package – and continues to argue about its financing

Elimination of sales tax on staple foods

“The current sales tax rate of seven percent on staple foods must be permanently reduced to 0.00 percent without replacement. This relieves the burden on low earners, families and social security recipients in particular, but at the same time on the entire population. Implementation would be unbureaucratic.

The same would be conceivable for tickets in local public transport, investments in regenerative energies (solar systems, wood pellet heating systems, heat pumps, etc.) and energy-related renovations. Such a measure works equally against the cold progression, does not have to be borne by future generations of taxpayers financed by debt, is socially just, promotes climate protection and does not have to be reversed through bureaucratic measures after inflation has been regulated.”
Mirko Tismer

Four relief proposals

“When it comes to reducing the burden, I think the first thing that is necessary is a general public transport ticket with a reduced price. Such a ticket, even for more than nine euros a month, means direct relief for all sections of the population, from students to pensioners.

In addition, energy taxes should be reduced in order to combat inflationary drivers directly. Another point is that possible heating cost subsidies and similar instruments should be paid more to people with low and middle incomes in the future, not to everyone equally. Ultimately, the gas surcharge must be completely rethought and worked out cleanly so that it is socially just.”
Philip Mueller

Political-technical botch

“The traffic light coalition led by SPD Chancellor Scholz is squandering our tax money with unprecedented generosity on relief to ‘cushion social hardship’ (quote Lars Klingbeil, SPD chairman).

Football millionaires, top managers, top-earning employees and civil servants, doctors, tax consultants, lawyers and much more are supported with the 300-euro energy price flat rate regardless of income. m. happy, while pensioners and students were ‘forgotten’ (Lars Klingbeil in the Today Journal of August 28, 2022).

This political-technical botch is now being repeated in the gas levy. Winners in the billions can help themselves from the tax pot at the expense of gas customers.

Relief through one-off payments, from which I have been ‘spared’ so far, makes sense, but must be paid out to the citizens on a limited basis. A flat-rate increase in child benefit also benefits the wealthy again.

The energy-related renovation costs of older houses also burden mainly older people, who usually have to make ends meet with a ‘normal’ retirement salary. Targeted help is required, not distribution to the ‘hard-working middle’ – whoever that middle is!”
Gerti Segerer-Milde

It is better to encourage than to relieve

“It should be encouraged instead of relieved. Private households should receive subsidies for photovoltaics, solar thermal energy, heat pumps, etc. in order to quickly become independent of fossil fuels. That would be a long-term help and would make a difference (not in the form of cheap credit, but in the form of money).

The government is just oversleeping the change. If there is no strong support in these areas now, the prices for the above-mentioned technical systems will become so expensive in the next few years that the public will not notice any support because the prices have become too high.”
Gerhard Gerdes

Just a placebo

“In my view, none of the proposed measures is more than a placebo that will, at best, raise a grim smile from most working people.

As a Liberal, I think the tax and social security system needs to be turned on its head, which means: An exact equivalent of the ALG-2 benefits (incl. housing and heating) for working people and their families must be tax- and – that is important – stay exempt from social security contributions.

If the state thinks that is too much that it has to do without, then the ‘citizen money’ is too high.

In any case, the relief would be fair – and at the same time the so-called ‘death zone’ in transfers would be eliminated, which keeps people away from work.”
Claudia Paul

Energy prices as the most pressing social problem

“It is my firm belief that energy prices will be the most pressing social issue for the foreseeable future: millions of households will be pushed to the brink of personal bankruptcy or even beyond, and this cannot be solved with one-size-fits-all measures.

If the coalition and the Union do not want to lose even more votes to the left and right-wing extremists, they have to introduce relief for people with small, low or middle incomes who can get there quickly and accurately.

In my opinion, one could have the employer reduce tax and possibly also social security deductions in payslips, which depend on the amount of the salary (and tax class/registered children). Appropriate grants would be paid for recipients of pensions or student loans; As far as I know, recipients of social assistance get the heating costs reimbursed anyway.

The measures should be scaled back over time or when energy prices are falling, after all the energy price should remain an incentive to save energy in the long run.”
Roland Stamm

Looking for a sensible overall concept

“Now it’s not about THE right relief! It is about the all-encompassing, sensible overall concept: companies and jobs, the population and relief for those who need it, climate protection/energy prices and the energy mix (short and long term) and sensible financing of the package of measures. Systemic thinking has always been the right approach and is ultimately in demand here. Getting the right experts around the table and putting together the right package of measures is the challenge of the hour.”
Britta Nitze

More clever experimental boats

“One ray of hope for me was the nine-euro ticket, with which the government and the population showed that they are willing to experiment despite the misgivings. I want to see more of these clever experimental boats! Maybe there will be more?

Otherwise, I hope that the government, when putting together new relief packages for the next three months, does not forget that our future consists of much more than just this time horizon. The short-term measures should be more closely supported by long-term strategies.”
Christian Siemensen

If you would like to have your say on this topic in the Handelsblatt, write us a comment, either by e-mail [email protected] or on Instagram at @handelsblatt.

More: Last week, the Handelsblatt readership debated whether company cars should be taxed differently.

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