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Monday, October 3, 2022

Germany to cut $10,000 million in taxes to counter inflation

“Like the current situation, the government is obliged to act”, the German finance minister, Christian Lindner, explained his decision to relieve German taxpayers. About 10,000 million euros. In the context of persistent inflation, Germany would apply an “inflation compensation law” that would include a basic allowance, the amount of income from which taxes are paid; to increase the amount to which the rate of 42% applies to the annual income statement (euro 61,972 next year and 63,515 in 2024); and an increase in support per child to families, which increases from EUR 8 per month in 2023 to EUR 227 per month. This measure will affect 48 million Germans, With an average relief of 192 euros per capita, and helping to alleviate the problem commonly referred to as “cold progress”, the “multiplier effect” of tax rates causes an increase in wages as a worker in the higher income group. when wage increases are consumed by inflation but still pay more taxes on them.

The main opposition Minister Lindner has found in his government allies, the “Traffic Light Coalition”, in addition to his Liberal Party (FDP).Rule the Social Democrats (SPD) and the Greens, who have finally surrendered to the evidence of the alarming loss of the purchasing power of the population and its consequences on the demands of the German economy as a whole. The SPD and Greens were demanding targeted relief for low-income people. “It should focus more on small and middle-income people” The vice president of the Social Democratic parliamentary group, Achim Post, has been criticized.

“Tax cuts in the billions, which benefit the highest earners three times more than those with low incomes, ignore reality,” is the opinion of the deputy chairman of the Green Parliamentary Group, Andreas Audresch. However, Lindner warned that the additional tax burden “is not justified in the current critical situation and would also be dangerous to economic growth.”

your goal is Mitigating the recession that threatens European locomotivesNotably in May after recording its first trade deficit since 1991. After contracting 0.7% at the end of 2021, Germany This year started with difficulties Still weighed by the effects of the pandemic and above all by the effects that the Ukraine invasion is having on the global business circuit. Lindner injects energy into domestic demand.

Chancellor Olaf Scholz (SPD) has endorsed the “fundamental good faith” of Lindner’s financial plans. A government spokesperson has made it clear that its tax plans should be seen as part of a larger overall concept that should be developed in the coming weeks, given the enormous cost of energy. The departmental voting is already starting and the concept will be developed in such a way that it gets the necessary support in the cabinet.

He cited Scholz’s statements that citizens should not be left alone with rising prices. In his previous role as Finance Minister, Scholz already corrected “Cold Progression” twice. And it now lacks arguments for overthrowing the Lindner Reform, which, for its part, has highlighted the need to avoid “tax increases by default.” “It’s not so much about lightening the load as it is about dropping a new burden,” he has said, “that strong shoulders should be carried more than narrow shoulders.”

support the opposition

As far as the conservative opposition is concerned, CDU/CSU Supports improvements. Christian Democrats’ financial policy spokeswoman, Julia Klockner, said that “Mr Lindner’s discharge proposals are expansive, but go in the right direction.” The German Confederation of Trade Unions (DGB), for its part, has rejected the finance minister’s plans on the grounds that “Your financial concept is too low”, According to board member Stephen Korzel, who wants relief “much bigger” than that €10 billion.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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