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Two-thirds of the income from the creeping tax increase flow back automatically. The governing parties can allocate one third depending on their political priorities. The actual burden of the cold progression would not be fully compensated for everyone, according to the criticism: Those who earn 1500 euros gross per month will be relieved by 182 euros according to the current model in 2024. For full compensation, 270 euros would be necessary. That’s complicated. The cold progression should be completely abolished.
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