Social balance: From when a group has to pay tax on the gas price brake

Created: 2022-11-25 05:05

By: Patricia Huber

For the "social balance" higher earners should pay tax on the gas price brake.

From when you have to pay extra probably depends on the solos.

Berlin – The gas price brake is intended to relieve German consumers of the sharp rise in heating costs as a result of the Ukraine war.

But the statutory price cap caused a lot of criticism even before it was introduced.

Social associations complained, for example, that the relief based on the watering can principle would also benefit high earners.

After all, a millionaire who heats his swimming pool would also benefit from the gas price brake.

How does the gas price brake work?

For private households and small and medium-sized companies, 80 percent of the annual consumption forecast for September 2022 will be capped at 12 cents per kilowatt hour for natural gas and 9.5 cents per kilowatt hour for district heating, both gross.

The price contractually agreed with the energy supplier applies to the remaining 20 percent.

This is intended to encourage consumers to save as much gas and heat as possible.

Gas price brake: 90 percent of citizens do not have to pay taxes on them

But the government wants to get rid of that now.

As the

reports, citizens with high incomes should pay tax on the relief payments from the gas price brake.

This emerges from a formulation aid from the Federal Ministry of Finance for the coalition faction, which is available to the newspaper.

The corresponding rule should be included in the annual tax law and "ensure social balance".

But who does this concern now?

This depends on the assessment limits for the solidarity surcharge.

So if you have to pay the solos, you also have to pay tax on the gas price brake.

Currently, anyone who pays less than 16,956 euros in income tax is exempt from the soli.

This affects around 90 percent of German taxpayers.

Gas price brake: Tax liability for high earners brings in 850 million euros

From a taxable annual income of 66,915 euros, the solos must be paid in part – here, a mitigation zone applies to around 6.5 percent of taxpayers, explains

.

If you have more than 96,820 euros in taxable income per year, you have to pay the full soli rate of 5.5 percent.

This affects around 3.5 percent of taxpayers in Germany.

So one thing is clear: Only about ten percent of German taxpayers also have to pay taxes on the gas price brake.

All others benefit fully from the relief.

Incidentally, the federal government would also benefit from the tax liability for high earners.

This could flush 850 million euros into the state coffers.