Finance Minister Lindner wants to relieve 48 million people, but there is a lot of criticism of his tax relief plans. Warnings of more poverty are spreading. And a debate about justice has erupted.
The criticism of the tax relief plans by Federal Finance Minister Christian Lindner does not stop. Rejection comes from the Verdi union, among others. Its chairman, Frank Werneke, complained that those who have high incomes and are affected by the top tax rate would benefit first and foremost. “Those who work hard every day but have a low income and are currently suffering the most from the price increase would hardly benefit – that’s blatantly unfair,” said Werneke of the “Rheinische Post”.
Werneke called for a comprehensive tax concept in which changes in the income tax rate would be offset by an increase in the top tax rate and an excess profit tax, which should be paid by companies that made disproportionately high profits during the crisis. “Employees who do not receive high salaries and are in real need in view of the price trend will not benefit from tinkering with the tax rate. Instead, another relief package with direct payments is needed – targeted for people with low to medium household incomes,” said the union boss.
The Düsseldorf economist Jens Südekum found that it was “simply not the time right now” to relieve all income areas. “In view of the rising inflation, we need a redistribution from top to bottom, not the other way around,” he told the “Spiegel”. Economics Veronika Grimm had also criticized that a reform in which the higher earners nominally gain more came at the wrong time.
48 million people are expected to benefit from plans
FDP leader Lindner presented his plans on Wednesday. 48 million citizens should benefit from 2023, it is about more than ten billion euros relief. In percentage terms, low earners are therefore relieved much more than top earners – but in absolute numbers it looks different. Politicians from the coalition partners Greens and SPD see a social imbalance. Chancellor Olaf Scholz (SPD) had described Lindner’s plans as a “good premium” and part of an overall package with further relief.
FDP parliamentary group leader Christian Dürr defended his party leader’s plans and called for their support. It is an “important step for more tax justice,” Dürr told the German Press Agency. “The proposed measures are a real relief for the broad middle of our society, which keeps our state and our social security systems running day after day,” said Dürr. “My request to all critics is: to support Christian Lindner’s project.”
CDU General Secretary Mario Czaja supported Lindner’s approach in principle: “We also think that tax relief for the broad middle by mitigating the cold progression is fundamentally right. This will relieve the burden on small and medium-sized incomes in particular,” said Czaja of the “Bild” newspaper ( Friday). Czaja called on Chancellor Scholz to bring about a decision at the cabinet table. The parliamentary director of the CSU state group in the Bundestag, Stefan Müller, criticized: “Even minimal relief leads to an outcry in the traffic light. The traffic light is a left-wing government in which the FDP is going under,” said Müller of the “Bild”.
Holetschek: Tax plans put a strain on the health system
According to Bavarian Health Minister Klaus Holetschek (CSU), the tax plans ignore the underfunding of the health system. The contributions that the federal government has been making for years for the statutory health insurance for low earners and the unemployed would only cover a fraction of the costs incurred for health insurance benefits, Holetschek told the German Press Agency in Munich on Friday. It is about at least nine billion euros a year that the health insurance and employers have to raise because the federal government is evading its responsibility for recipients of basic security benefits.
When Lindner explains that he wants to do something for the “broad middle”, he has to address the important issue of statutory health insurance for recipients of unemployment benefit II. “Here would be a starting point for relief by the federal government, which I would very much welcome.”
Majority in poll: government is doing too little to ease the burden
In view of the sharp rise in prices, a majority of citizens in a survey accuses the federal government of not doing enough to ease the burden. This complained in the ZDF “political barometer” on Friday, 58 percent of the 1389 respondents, as determined by the research group elections. 30 percent think the measures taken are just right. 5 percent are of the opinion that too much is actually being done for this.
Critics of the government predominate among the supporters of all parties in the Bundestag, but most strongly among AfD (80 percent) and Linken (71 percent), least among Union, Greens and SPD (52 or 53 percent respectively).
Only 55 percent now say that their own financial situation is good – at the beginning of the year it was 65 percent. 37 percent say partly/partially, 8 percent classify them as bad. Never before have so many – namely 40 percent – expected that their own economic situation will be worse in a year than it is today. 49 percent assume that their personal situation will remain the same. 10 percent expect an improvement.
Dröge: Better an energy flat rate than a tax reform
To relieve people with low incomes, the Greens are calling for the renewed payment of an energy flat rate instead of the tax reform presented by Finance Minister Christian Lindner (FDP). “From our point of view, that would be a much better model that we could repeat again,” said parliamentary group leader Katharina Dröge on Friday in the ZDF “Morgenmagazin”.
Looking at Lindner’s draft, she explained: “However, from our point of view, the focus and direction are not right here: we must not relieve the top earners the most, but we must relieve those who need it most urgently.” The energy flat rate that has already been decided is “a much fairer way” because it works the other way around. The 300 euros would be taxed, so the richest would get the least and the low paid the most because they paid the least taxes.
Butterwegge: Poverty will continue to spread
Above all, the exploding energy and sharply rising food prices are causing problems for many people. Chancellor Scholz does not therefore expect any social unrest, as he made clear on Thursday. Poverty researcher Christoph Butterwegge nonetheless warned in the “Rheinische Post”: “The energy and food prices, which are likely to continue to rise in the future, are likely to lead to social upheavals right down to the middle of society. Some middle-class families may also have to spend half their income on rent including heating. Therefore, poverty will continue to spread.”
Green party leader Ricarda Lang told the newspaper that to prevent a wave of poverty, short-term measures are needed to provide relief in autumn and winter to those most affected by rising prices. At the same time, however, Lang called for a “fundamental debate about justice, which we must also have in government.”
Source: Stern
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
