German Finance Minister Christian Lindner announced plans to provide 23 billion euros (2.2 trillion rubles) in income tax exemptions for individuals until 2026, Bloomberg reported on June 5.
The proposal includes increasing tax-free benefits for low-income people as well as eliminating income limits. Lindner believes that in this way the effect of inflation will be offset, since workers receive higher payments and the country’s tax system is progressive.
Finance Minister Christian Lindner (FDP) thus proposes that the government give up billions of dollars in revenue amid tough budget negotiations with its coalition partners, the Social Democrats and the Greens. The budget deficit for 2025 is estimated at approximately 20 billion euros (1.95 trillion rubles).
Lindner has imposed austerity in all ministries except defense and is resisting pressure from Chancellor Olaf Scholz and Economy Minister Robert Habeck to suspend the debt brake.
Union 90/Greens financial policy expert Katharina Beck was skeptical about Lindner’s plans, given next year’s budget deficit, which she says will be 25 billion euros (2.4 trillion rubles). .
“In this context, implementing double-digit billions of across-the-board tax cuts cannot be taken seriously.”Beck commented on Lindner’s proposal to the newspaper Welt.
Source: Rossa Primavera
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