The black-red federal government wants to launch the controversial income tax reform within this week.
The reform provides for relief totaling ten billion euros annually. This is to be achieved, among other things, through a higher basic allowance and a later onset of the top tax rate. The lump sum for work-related expenses and child benefit are also to increase.
In addition, the maximum permissible hourly wage for tax-free Sunday and public holiday bonuses is to be raised from 50 to 75 euros. To finance this, the wealth tax will kick in earlier, and a new bracket, the so-called super-rich tax, will be introduced.
The reform is facing criticism, however, because no general compensation for inflation-driven cold progression is planned. “There will be a partial compensation for cold progression, namely for those with smaller and middle incomes,” the Finance Ministry said.
Source: www.tagesspiegel.de
