Lindner plans tax relief of 23 billion euros
According to German Finance Minister Christian Lindner (FDP), citizens will receive tax reliefs amounting to 23 billion Euros in the next two years. "We are easing the burden on citizens and companies", Lindner stated during the presentation of the key points for the federal budget for the coming year. Comprehensive tax reliefs are to be achieved through increases in deductible expenses, changes to income tax and wage tax, and shifts in the solidarity surcharge. According to sources from the Finance Ministry, these tax reliefs are supposed to be in line with the debt brake and therefore with the constitutional requirements.
Lindner emphasized that in addition to tax reliefs, there will also be directly noticeable improvements for families. For instance, child benefit and the child supplement for families receiving social assistance will be increased by five Euros each, starting from January 1, 2025.
The leaders of the Traffic Light Coalition reached an agreement on the most important issues regarding the federal budget 2025 after a long night of negotiations. Federal Chancellor Olaf Scholz (SPD), Economy Minister Robert Habeck (Greens), and Finance Minister Lindner presented the results in Berlin at noon.
With these tax reliefs worth 23 billion Euros, as proposed by Finance Minister Lindner, the height of the debt burden on citizens and companies is expected to decrease significantly. Lindner's relief measures, which include increases in deductible expenses and changes to income tax and wage tax, are designed to align with the Debt brake and adhere to constitutional requirements. Additionally, Lindner highlighted that the relief efforts will extend beyond just taxation, with directly noticeable improvements such as a five Euro increase in child benefit and the child supplement for eligible families, starting from 2025.
