The traffic light coalition is planning flat-rate energy prices for employees who are subject to income tax, but not for pensioners. Economists advocate changing that.
The heads of the economic research institutes DIW and IW demand that the planned energy price flat rate of 300 euros also applies to pensioners.
The one-time lump sum provided for in a relief package by the traffic light coalition should not only be given to those in employment, said the economists in the “Rheinische Post”.
«The energy flat rate is a very good instrument. However, it should not only benefit employees, but all people, »the newspaper quotes the head of the German Institute for Economic Research (DIW), Marcel Fratzscher. The instrument is also not strong enough. “It should be increased significantly, because over the next two years most people’s additional energy costs will exceed the 300 euros many times over.”
The head of the Institute of German Economics (IW), Michael Hüther, made a similar statement: “There is no reason to exclude pensioner households from this.”
The coalition is reacting to the sharp rise in energy and fuel prices with extensive relief for the people in Germany worth billions. One measure is the energy flat rate. So far, it has been planned that every employee who is subject to income tax and who is classified in tax brackets 1 to 5 will receive a one-off lump sum of 300 euros gross. The money is to be paid out by the employer as a salary subsidy, with the self-employed instead reducing the advance tax payment. The lump sum is subject to income tax.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
