Tax-free one-time payment: Scholz's initiative irritates unions, opposition – and the Greens

Created: 06/27/2022, 18:54

By: Fabian Hartmann

Federal Chancellor Olaf Scholz (SPD) – here at the EU summit in Brussels – will meet with employers and trade unions on July 4th to discuss price increases.

© Nicolas Maeterlinck/dpa

How can the rise in prices be stopped and relieved at the same time?

Chancellor Olaf Scholz is promoting one-off payments from employers.

Criticism comes from the opposition and trade unions - and from the coalition.

Berlin – Recently, prices in Germany only knew one direction: steeply upwards.

In order to mitigate inflation, Chancellor Olaf Scholz (SPD) is campaigning

for a "concerted campaign" - and tax-free one-off payments by employers to their employees - according to a report by

But this idea is not only a source of criticism from the opposition and trade unions – concerns are also being raised in the government camp.

Union parliamentary group leader Hermann Gröhe (CDU) accuses the traffic light government of not having a concept against the price increases.

"There is a lack of accuracy," said Gröhe

.

Each individual measure harbors the risk of overlooking certain groups of people.

As an example, Gröhe cites the energy flat rate, which pensioners and students get nothing.

"People find that deeply unfair," says Gröhe.

Instead, the CDU politician proposes abolishing cold progression – and, in view of rising interest rates, putting more emphasis on budgetary discipline.

Tax-free one-time payment: CDU man Gröhe accuses Ampel of not having a concept

Gröhe does not rule out one-off payments to employees per se.

Whether the state will help out with taxes would first have to be discussed with the collective bargaining partners.

"To carry this out publicly and in dispute with the social partners represents a false start of the 'concerted action' even before the first meeting," Gröhe

.

Federal Chancellor Olaf Scholz wants to discuss with employers and trade unions on July 4 how price developments can be brought under control again.

Scholz's idea is for employers to transfer their employees a tax-free special payment.

In return, the unions are to forego part of the wage increases in the collective bargaining rounds.

Workers who are not bound by a collective agreement and pensioners should be supported separately, it is said.

One-off payment plan from Scholz: left and union upset

Criticism of the one-off payments also comes from the left.

"Employers should rather be asked by the chancellor to negotiate proper wage settlements with unions and not to use a relief bonus as a joker to further circumvent them," said the new party leader Martin Schirdewan

.

In the union camp, the move also causes upset.

IG Metall rejects the plans, said a spokeswoman for the

news agency .

The police union (GdP) described the envisaged tax-free one-off payment as "not sustainable help".

The trade union economist Sebastian Dullien, director of the Institute for Macroeconomics and Business Cycle Research (IMK), points out that salaries in many sectors have not increased during the pandemic anyway.

"Even if inflation falls again in the coming year, consumer prices will probably not fall again," Dullien

.

So there is a gap that needs to be filled.

One-off payment to compensate for inflation: Greens ask about justice

The Greens are also raising concerns.

"The rising prices are a huge problem for people with little money," said parliamentary group leader Andreas Audretsch

.

However, it would need to be clarified how certain groups of people – such as the self-employed or employees in companies not bound by collective bargaining agreements – should be specifically helped.

In any case, Audretsch sees a central problem of Scholz' advance elsewhere;

at justice.

"It has to be answered why people with very high incomes should receive state support in companies that make good profits," said the Green politician.

His suggestion: advance the energy transition and provide relief where the need is greatest.

Specifically, Audretsch is promoting higher Hartz IV rates and more money in basic security – the Greens are planning to pay 50 euros per month permanently.

To do this, however, one's own coalition partners would first have to be convinced.

It is above all the Liberals who are skeptical about additional spending requests.