The proposed relief bonus for employees is in jeopardy after it failed in the Bundesrat. Manuela Schwesig, the Minister-President of Mecklenburg-Vorpommern, stated in the ARD program "Caren Miosga" that the federal government should "take the bonus off the table." Instead, she advocates for a comprehensive income tax reform aimed at relieving particularly small and medium incomes up to 3000 euros per month.
Markus Söder, the CSU leader and Minister-President of Bavaria, also sees no future for the bonus. In the ARD program "Bericht aus Berlin," he said: "I believe it is off the table." He described the bonus as a "well-intentioned idea" that has faced significant resistance from the business sector. Additionally, the tax losses for the states would be too high.
Originally, it was planned that employers could voluntarily pay their employees up to 1000 euros tax-free until June 30, 2027. This amount could have been deducted as a business expense, implying partial state involvement. However, the Bundesrat halted the initiative, as only four out of 16 states agreed. Criticism was directed at the lack of counter-financing and the widespread rejection from the business community.
It is currently unclear whether the federal government will call for a mediation committee between the Bundestag and Bundesrat. On Tuesday, the topic of relief measures will be discussed in the coalition committee of the Union and SPD, where the planned income tax reform is also expected to be addressed. In the coalition agreement, the two parties had agreed to lower the income tax for small and medium incomes by the middle of the legislative period.
