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Christian Lindner: The tax relief is likely to be higher
PHOTO: JOHN MACDOUGALL / AFP
Due to inflation, the tax relief decided by the government is likely to be higher than previously envisaged in the relevant draft law.
As a result, the relief for a family of four with a gross income of around 66,000 euros in the coming year would be 928 euros and thus 204 euros higher, the editorial network Germany (RND) reported, citing internal calculations by the Federal Ministry of Finance.
The background is therefore the current inflation forecast of 8.8 percent.
Federal Finance Minister Christian Lindner (FDP) had already announced that the actual value for inflation should be taken into account in the law, which is currently being debated in parliament.
It is intended in particular to compensate for the so-called cold progression.
This describes the effect that salary increases in connection with inflation are eaten up by higher tax rates.
When Lindner presented the tax plans at the beginning of August, a price increase of around six percent was still assumed.
According to the RND, for a single person with a gross income of almost 29,000 euros, the new plans would now reduce the tax burden by a total of 220 euros, 93 euros more than previously planned.
As SPIEGEL previously reported, FDP leader Christian Lindner wants to relieve taxpayers of 10.1 billion euros with his plans in the coming year.
Criticism came from the opposition, but also from the Green coalition partner: the projects were socially unbalanced.
Because citizens with high incomes pay higher tax rates, the absolute relief here is greater than for those with low incomes.
Read more about this here.
The law provides for an adjustment of the income tax rate to the inflation rate.
In addition, the child allowance and child benefit are to be increased.
ani/AFP
