Commissioner: How the plans of the federal government work

Jens M. is someone who can be located in the much -cited middle of society. The 59-year-old lives in Hamburg, northern districts. He has been working for more than 40 years, has been married, raised three children, the youngest in training. Jens’ working day usually starts around five in the morning. It is 16 kilometers to the company. He has to use the car, because he drives the bus … trained as a professional driver, Jens M. became the Bundeswehr, was then “on the go” for an international freight forwarder, switched to the bus at the regional transport association.

“Tax refund?”. Jens M. laughs. He gets a few hundred euros back every year. “This is more of a topic for large earners.” He knows the commuter flat rate, which is called officially distance flat rate. “But it doesn’t help me,” he says. And that’s true in his case. But it should change.

The coalition agreement of the new federal government stipulates that the commuter flat rate should be 0.38 euros per kilometer from 2026. So far, this amount only applies from the 21st kilometer. Among them are 30 cents. Regardless of the means of transport used, capped at 4500 euros annually.

For Jens M., there are 1056 euros on 220 working days a year, which he could enter in his income tax return as advertising costs. Plus a few manageable expenses. However, Jens M. does not skip the so-called employee lump sum. It is currently 1230 euros per year. This flat rate acts like a lid. There are only remarkable tax reduction if higher advertising costs are proven in total. Because above the flat rate, every euro reduces the taxable income.

With the new commuter flat rate alone, he would get Jens M. at 1338 euros. Plus 16 euros flat rate for professions initiated professionally, i.e. the salary account management. Plus 110 euros flat rate for work equipment, plus the membership fee for the union, plus professional telephone costs, plus, plus, plus. For employees like Jens M., the new regulation of the commuter flat rate could be a noticeable tax relief.

Politically, however, there is a dispute, at the expense of which tax fund will relieve taxpayers. The federal states expect a total of more than ten billion euros. And so it is not surprising that, among other things, the financial senators of Berlin and Hamburg are demanding that the federal government may pay for the minor revenue. The two city countries apparently fear more cases such as Jens M., i.e. significantly higher tax reimbursements.

According to a current evaluation of the Federal Statistical Office, almost 14 million workers received the commuter flat rate for an average of 28 kilometers for operation. 84 percent of them used at least partially a car for this path. More than half are average earners.

There are economists that generally criticize the flat rate as a climate -damaging and expensive subsidy. Others see them as an economic policy instrument in order to keep the labor market in metropolises attractive for people in rural areas and thus not to further more expensive life in the big cities by increasing living space demand. Jens M. would be at least fair if every kilometer was calculated for work with the same amount, as it is in the coalition agreement. Especially since his housing and living costs are higher at the city workplace than in the distant surrounding area. He is already looking forward to what will come out in his tax return for 2026.