In addition, the current fiscal equalization has been extended by two years until 2023. The government bill includes, among other things, compensation payments to the federal states for the hospitals for 2020 and 2021, as the parliamentary correspondence reported. A total of 750 million euros should be available for the corona-related reduced income and additional expenditure.
As part of the tax reform, the second and third tariff levels of wage and income tax will be reduced from 35 to 30 percent and from 42 to 40 percent, respectively. Families are to be relieved by increasing the family bonus plus from 1,500 to 2,000 euros and the child allowance from 250 to 450 euros per child and year.
A separate law was created for the regional climate bonus, which is intended to cushion the new CO2 pricing. In addition, the basic allowance for the profit allowance is to be raised from 13 to 15 percent and corporate income tax (KÖSt) is to be reduced from 25 to 23 percent.
Source: Nachrichten
