Lindner aims to confront the "courageless tax hike".
Up until now, the Greens and SPD have been obstructing Finance Minister Lindner's tax proposals. However, Lindner is now making his plans for tax relief more detailed, highlighting "numbers and projections" to promote them within the federal government.
According to an article in the "Bild" newspaper, Federal Finance Minister Christian Lindner plans tax reductions anticipated to exceed €13 billion by 2026. The details of Lindner's proposed tax reductions have been more specifically outlined, with the "Bild" reporting on these numbers and projections.
Lindner's goal is to raise the basic deduction in a series of steps. The Taxpayers' Association projects that the relief from these plans will amount to €140 per employee. In the first stage, the deduction would be raised retrospectively to January of this year by €180 to €11,784. At the end of 2025, there should be another increase of €300, with a final increase of €252 in 2026, according to the "Bild". Association president Reiner Holznagel told the newspaper that the tax plans are "what any finance minister should do." In Lindner's view, these measures uphold the constitution.
Recently, Lindner cautioned his coalition partners against blocking tax cuts. "A possible blockade on tax cuts would be a hidden and thus cowardly tax increase," Lindner emphasized. He went on to argue that "some at the SPD and Greens don't seem to have an issue with financing themselves through a lot of tax money if people don't work." In contrast, he claimed that his coalition partners exhibit a "lack of respect for taxpayers." Consequently, Lindner is advocating for a new adjustment to combat inflation in income tax and payroll tax.
The term "cold progression" describes a situation where someone is moved into a higher tax bracket due to a pay increase that only accounts for inflation, leading to a decline in real income. traditionally, the basic deduction or adjustments to tax brackets are made to counteract this.
