After months of negotiations, the German government has presented a concept for the new income tax. The reform is set to relieve 83 percent of taxpayers, as Zeit reports, citing the government paper. Total costs amount to around ten billion euros, with implementation planned by 2028.
The calculator developed by Zeit shows the concrete effects: a single earner with a gross annual income of 55,000 euros will have about 185 euros more net per year. For an income of 320,000 euros, the tax burden increases by around 1,062 euros. A working family with an income of 60,000 euros is set to receive relief of about 600 euros.
The coalition is shifting the tax brackets: the top tax rate will apply from 70,600 euros, the wealth tax rate from 250,000 euros, and a new super-rich tax from 280,000 euros. With this, Chancellor Lars Klingbeil (SPD) and Friedrich Merz (CDU) are fulfilling a promise from the coalition agreement.
Source: www.zeit.de
