Lindner wants tax cuts - or he resigns
Financial Minister Lindner has been calling for taxpayers to be relieved of the tax burden due to inflation for a long time. However, this has so far met with deaf ears among coalition partners. Now, he is increasing the pressure and making his office dependent on this demand.
Federal Finance Minister Christian Lindner has tied his tenure in office to the requirement that the tax burden on citizens be adjusted in line with inflation. In an interview with "Welt am Sonntag," the FDP chairman stated that for the coming year, there would be a "zero round" - and "tax relief for the working population will be noticeable."
In response to the objection that the coalition partners were against it, he added: "With a liberal finance minister, it won't happen that tax deductions and the tax rate won't be adjusted to inflation."
At the beginning of June, plans became known according to which the Finance Minister intends to offset the effects of inflation and relieve taxpayers of approximately 23 billion Euros in the coming years. He announced a adjustment of wage and income tax in three steps until 2026. He wants to eliminate the so-called cold progression, a type of sneaky tax increase, where a wage increase is completely eaten up by inflation but still leads to a higher tax rate.
However, there was opposition from responsible SPD and Green politicians in the face of the coalition dispute over the federal budget for the coming year. Spending cuts did not fit with tax gifts for better-off earners, it was argued. Those who paid the most taxes benefited most from the abolition of cold progression.
- Despite the opposition from coalition partners, such as the SPD and Greens, Christian Lindner, the FDP's chairman and Finance Minister, continues to advocate for a "Citizen's income" adjustment, aiming to alleviate the tax burden due to inflation.
- In the context of the ongoing coalition dispute over the federal budget for the coming year, some politicians have raised concerns about proposed "Tax cuts" and the potential for "Spending cuts" not aligning with their values.
- The "Traffic light coalition" is currently facing challenges, as the demands for tax relief from the FDP, led by Christian Lindner, clash with the views of other coalition partners, particularly on issues related to tax policy and income inequality.
