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"Protection against inflation": Lindner defends the tax plan - and tells of an urgent request to the EU

2022-08-14T19:40:16.016Z

Christian Lindner has received some massive criticism for his tax plan. In the ZDF summer interview, the finance minister defended his plan as "protection against inflation".



Christian Lindner has received some massive criticism for his tax plan.

In the ZDF summer interview, the finance minister defended his plan as "protection against inflation".

Berlin/Munich - First the corona virus, then the Ukraine war: The economic consequences of these two events are often given as the reason for the significantly increased inflation.

However, the causes can be much more profound and diverse.

In any case, one thing is certain: everything will be more expensive - including gas and electricity.

This puts a lot of pressure on the population.

The federal government under Chancellor Olaf Scholz (SPD) keeps promising more relief.

The measures also include the tax plan of Federal Finance Minister Christian Lindner (FDP).

Not everyone thinks the plan is fair or appropriate.

In the ZDF summer interview, Lindner defended the project.

Christian Lindner in the ZDF summer interview: Minister of Finance presents his tax plan

Critics of the Linder Plan complain that the plan does not focus on those in Germany who are really in need.

Scholz confirmed on Saturday (13 August) in his weekly video message "Kanzler compact" that the traffic light coalition wanted to help these groups in particular to get through the winter well despite the sharp rise in energy and food prices.

However, associations and the opposition raised doubts about Lindner's tax plan.

The Social Association Germany (SoVD) spoke of a "slap in the face for pensioners, low earners and many other people".

However, Lindner defended his plans in the ZDF summer interview.

On the one hand there are the needy, for whom a lot of money is being mobilized, on the other hand the "middle of society", said the FDP leader.

The median annual income is around 43,000 euros.

"And the people who earn 30,000, 40,000, 50,000 euros are not the top earners," said the minister.

However, they would be burdened in the coming year if the state did nothing now.

“I am not proposing anything other than tax protection against inflation,” explained Lindner.

Christian Lindner in the ZDF summer interview: FDP boss rejects financing relief through debt

With regard to the many traffic light relief plans, a lot also revolves around the financing of these offers.

On ZDF, Lindner again strictly refused to finance new debt relief measures to alleviate high inflation.

"The debt brake is a requirement of our constitution," emphasized the FDP chairman clearly.

He couldn't just make exceptions at will.

“The debt brake will be suspended in the event of an external shock that cannot be influenced or foreseen.

But now we have been living in the reality of the Ukraine war with its economic effects for a long time," he emphasized.

There is also an economic argument against suspending the debt brake again: “Inflation means that the state has to do its part to combat the causes of inflation.

He does that by reducing his spending, his debt.”

Traffic light coalition: The Scholz cabinet at a glance

Traffic light coalition: The Scholz cabinet at a glance

Christian Lindner in the ZDF summer interview: VAT for the gas levy?

Because one of the causes of inflation is the government's spending policy.

The rising interest burden also limited the scope.

Unlike in previous years, debt is “no longer free of charge,” said Lindner.

The state will soon have to repay debts that it is now taking on.

"Not everything that is desirable can be financed," said Lindner, adding: "Because if we do this with debt, then within a few years we will have to raise taxes just to pay off the debts of the past."

We would strangle our economy.” 

In the ZDF summer interview, Lindner also revealed that he had asked the EU Commission for approval not to levy VAT on the state gas levy.

Lindner said he was trying "to the best of his ability" to avert a VAT levy.

The federal government is doing “what is in our power” to avert the VAT levy on the levy, which is actually required under EU law.

It is about "finding a way that this act of solidarity is not also subject to a tax and the state benefits from it," emphasized the Federal Minister of Finance.

In the video: First goal achieved - gas storage in Germany at 75 percent

According to Lindner's letter to EU Finance Commissioner Paolo Gentiloni, which was made public on Sunday (14 August), the surcharge represents an additional burden for consumers, which would be exacerbated by a VAT levy.

In the letter to the EU, he asked Finance Commissioner Gentiloni to use his right of initiative and give EU member states the option of not levying VAT on government levies in the energy sector for a limited time.

In the letter dated Friday (August 12)

, Lindner referred

to the extraordinary situation due to the Ukraine war and the growing resistance of the population to the VAT levy on state taxes.

(bb/dpa/AFP)

Source: merkur

All news articles on 2022-08-14

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