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Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) in conversation
Photo: Michele Tantussi / dpa
According to a study, the relief package put together by the traffic light coalition because of the high energy prices is too small to fully compensate for the citizens' loss of purchasing power this year.
The annual total volume of an estimated 12 billion euros is put into perspective in view of the current price increase, according to a short report by the Cologne Institute for Economic Research (IW).
"The relief will only be able to partially compensate for the loss of purchasing power," write the authors.
Single with a gross income of 25,000 euros save 150 euros
In view of the rising prices for gas, electricity, oil and fuel, the leaders of the SPD, Greens and FDP recently decided on several relief measures.
In the tax return, the basic allowance, flat-rate income tax allowance and, limited to 2026, the commuter flat-rate for long-distance commuters are to be increased retroactively to the beginning of the year.
The EEG surcharge for green electricity is to be removed from the electricity bill in July and financed through the federal budget.
There should also be an immediate bonus for children affected by poverty.
According to IW Köln, a single person with an annual gross income of 25,000 euros will have to pay around 150 euros less this year as a result of the tax measures and the abolition of the EEG surcharge.
The more you earn, the greater the relief: a single person with an annual income of 75,000 euros will pay around 185 euros less.
Whether you use the higher flat rate for long-distance commuters or the higher flat rate for advertising costs makes little difference.
Without the higher commuter allowance from the 21st kilometer, there would generally be no relief for commuters with long distances.
In addition, the scientists of the IW see risks in the relief package: The higher basic allowance leads to a further compression of the income tax rate, i.e. to a rapid increase in the tax rate at the beginning of the rate, they write.
This reduces the incentive to expand a job or to work at all as a second earner in a marriage.
The increase in income-related expenses was also overdue anyway – the flat rate was last raised in 2011.
Measures "easily financed"
According to the IW report, the measures can “easily be financed” by the state because tax revenue also increases in the shadow of inflation.
For every percentage point of inflation, tax revenues are estimated to have increased by more than 10 billion euros.
The coalition's relief package still has to be approved by the cabinet, Bundestag and Bundesrat before it can come into force.
It is to be financed from the 2022 budget, which Finance Minister Christian Lindner (FDP) intends to present in the middle of the month.
has/dpa
