According to analysis: High earners benefit particularly strongly from Lindner's tax reduction plans

According to analysis
Particularly high earners benefit particularly strongly from Lindner's tax reduction plans

17.09.2024, 09:46

According to a study by well-receiving people, the current tax reduction plans of Federal Finance Minister Christian Lindner are particularly beneficial. Singles with a gross monthly salary of 8,000 euros would be relieved of 500 euros if the government's plans are implemented in 2025, according to an analysis by the Bremen Chamber of Labor, which the “Süddeutsche Zeitung” reported on Tuesday. For couples with two children who earn the same amount, the tax relief would be 400 euros per year.

However, this relief is 1.3 to five times higher than for normal earners whose gross monthly salary is between 2,000 and 5,000 euros, it said. The Chamber of Employees based its calculations on the Tax Development Act, with which Finance Minister Lindner wants to raise the basic figures for income tax and the exemption limit for the solidarity contribution, among other things, to compensate for the so-called “cold progression”.

The study criticizes the approach because average earners with children are far more affected by the high inflation than wealthier people. According to a study by the Institute for Macroeconomics, couples with two children or single parents with one child and a net monthly income of just under 3,000 euros will have 260 or 320 euros less income available in 2024 after inflation than in 2021 before the wave of inflation.