The chances of introducing a relief bonus for employees have significantly decreased after the Bundesrat's veto. CSU leader Markus Söder stated that he sees no future for the bonus. Manuela Schwesig (SPD), the Minister-President of Mecklenburg-Vorpommern, also advises the black-red federal government to reject the initiative and instead focus on a comprehensive income tax reform.
Originally, it was planned that employers could voluntarily pay their employees up to 1,000 euros tax-free as relief until June 30, 2027. These payments were to be deductible as business expenses, which would have meant partial state involvement in the bonus. However, the Bundesrat halted the initiative on Friday, as only four out of 16 states agreed, and the states were dissatisfied with the financing.
Additionally, there was significant criticism from the business sector regarding the bonus. It remains unclear whether the federal government will call for a mediation committee from the Bundestag and Bundesrat to find a compromise. On Tuesday, the topic of relief measures will be discussed in the coalition committee of CDU/CSU and SPD, where the planned income tax reform is also likely to be addressed.
