Federal Finance Minister Christian Lindner is planning a relief package of more than 14 billion euros for the next two years, reports the news magazine Der Spiegel. The wealthy in particular should benefit less than other population groups. The FDP boss wants to present his concept this week.
In 2023, the tax relief for citizens should be around 10.1 billion euros, according to a preliminary report by “Spiegel”. In the following year it should be another four billion euros. In doing so, Lindner not only plans to return the inflationary profits of the Treasury to the citizens, but also reforms of the basic tax-free allowance and an increase in child benefit.
According to “Spiegel”, the basic allowance is to increase from 10,348 euros to 10,633 euros next year. In 2024, another 300 euros will be added. The top tax rate is also to be raised: from the current EUR 58,597 to EUR 61,972 in the coming year. In 2024 it should therefore be 63,521 euros.
Families should benefit from an increase in child benefit for the first two children in 2023. It then increases by eight euros to 227, reports the “Spiegel”. The child benefit for the third child is also to be increased by two euros to 227 euros. In 2024, an increase of six euros is planned for the first three children. The child benefit for the fourth child will remain at 250 euros for the time being.
Rich taxpayers are partially exempt from the planned tax cuts. Lindner does not want to adjust the current 45 percent tax rate for the wealthy, writes the “Spiegel”. According to the news magazine, the relief has already been priced into Lindner’s draft budget for 2023. The federal and state governments should therefore share the costs. (tsp)
