Lindner advocates for the tax easement advocated by the Ampel administration.
German Finance Minister Christian Lindner has stood up for the tax reduction plans that the traffic light government intends to implement in the Bundestag. "From our viewpoint, this is a matter of fairness," Lindner stated during the plenary session on Thursday. "It's a fact that social assistance benefits are adjusted for inflation - the very same right should apply to people who fund these benefits through their taxes."
The Tax Adjustment Act, initially debated in the Bundestag, forms the initial phase of the growth plan approved by the coalition during the summer. It encompasses several key aspects, such as boosting the fundamental and child tax exemptions for income and corporate tax, as well as elevating the tax rates for both income and corporate tax.
With these adjustments, workers may anticipate tax relief of approximately seven billion euros next year, and 27 billion euros annually by 2028. More than half of this relief will be covered by local governments and municipalities.
Lindner reinforced the notion that tax relief is crucial to inspire private investment and stimulate the economy. "We won't conquer our economic sluggishness through state investment promotion or subsidies, not by accruing more public debt, but only if businesses invest more," Lindner highlighted.
The Tax Adjustment Act acknowledges that social assistance benefits are regularly adjusted for inflation, suggesting that a similar consideration should be given to individuals who fund these benefits through their taxes, falling under the category of 'fairness'. The implementation of the tax reduction plans, as proposed by the traffic light government, could potentially encourage other necessary adjustments in various sectors, thereby promoting a more balanced system.
