Christian Lindner has had to take a lot of criticism for his plans to compensate for inflation – top earners are preferred, they say. The Federal Minister of Finance called the industry on the plan.
Finance Minister Christian Lindner is hoping for the support of the industrial unions IG Metall and IG BCE for his planned tax reform. “Because the large number of their members would be affected by the secret tax increases if the tax system is not adjusted to inflation,” said the FDP politician of the German Press Agency.
The results of the forthcoming collective bargaining round could be thwarted by higher tax payments if politicians do not act. “Doing nothing would be unfair to the working middle class in this country,” said Lindner. It’s about millions of people who earn 30,000, 40,000 or 50,000 euros a year. “These medium-sized companies must not be weakened because the economic success of our country depends on their willingness to perform,” said Lindner. “On the contrary, these people deserve respect because they have to bear the burden of inflation and at the same time finance our social systems.”
Lindner wants to compensate for the so-called cold progression. This is an effect that causes citizens to pay more taxes in times of high inflation, even though their purchasing power does not increase. The Minister of Finance has therefore proposed raising the basic allowance and the limit for the top tax rate. Politicians from the coalition partners SPD and Greens criticize the proposal that euros and cents would arrive less with low earners than with top earners. Chancellor Olaf Scholz (SPD) made it clear that Lindner’s reform could only be part of a relief package. People with lower incomes should also be given targeted support.
Source: Stern
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