Opposition criticizes planned tax breaks for skilled workers from abroad

Opposition criticizes planned tax breaks for skilled workers from abroad

During their household planning last week, the leaders of the traffic light coalition agreed to grant tax relief to expert personnel from abroad in the first three years. The measure is intended to counteract the skilled labor shortage in Germany.

"While German workers with medium incomes suffer from significantly above-average taxes and duties, the federal government wants to privilege foreign expert personnel with massive tax reliefs," said Wagenknecht. The BSW chairwoman also expressed doubts about whether the plan was compatible with the equality principle enshrined in the Basic Law (Article 3). She demanded that the federal government instead focus on employing those already in the country.

Union Finance Minister Mathias Middelberg (CDU) criticized the plans of the traffic light coalition as well: "Differential taxation of foreign workers compared to their own people is not a good idea," he told the "Welt" newspaper. Instead of tax incentives for a specific group of immigrants, he argued that working in Germany should be made more attractive again. It is necessary, he said, "to significantly increase the wage gap to citizen's benefits and impose effective sanctions."

The CSU sees a "threat to social peace" in the plans. CSU fraction leader in the Bavarian state parliament, Klaus Holetschek, described these in the newspapers of the Bayern Media Group as "scandalous discrimination of natives." The plans divided society and were "probably also unconstitutional." To effectively combat the skilled labor shortage, Holetschek proposed making parts of the wages of caregivers or other social professions tax-exempt.

Deputies from the Left and AfD criticized the plan as well. "This is an openly discriminatory policy," explained René Springer, spokesperson for Labor and Social Affairs of the AfD parliamentary group. The Linke politician Susanne Ferschl complained in the "Welt": "Tax benefits for foreign expert personnel harms solidarity in workforces and contradicts the principle of equality enshrined in the Basic Law."

Government spokesman Steffen Hebestreit defended the planned measure, stating in Berlin before journalists that it was about experts, where Germany is in tight competition with other countries. In many other European countries, he pointed out, there are tax incentives and deductions to attract experts to their respective locations.

Hebestreit added that the tax reliefs would only be granted within a minimum and a maximum annual gross income of the experts. Details would be worked out and presented until the cabinet decision in the coming week, he announced.

Bundesminister of Economics Robert Habeck (Greens) stated on the "Welt" broadcaster that he saw the "justice argument" - but emphasized: "We know, and we see it everywhere, that we need workers. And other countries do it too." Economically, there is an argument for the model: "If more experts come to Germany because they want to work here or because they can claim these deductions, we all benefit."

The head of the German Institute for Economic Research (DIW), Marcel Fratzscher, also defended the plan. "The tax relief for foreign specialized workers is wise, as Germany needs to assert itself in the European competition and some neighbors have already introduced such tax incentives," he told the "Rheinische Post" (Tuesday edition). Germany must become more attractive for highly qualified labor - "this includes a better welcoming culture, the dismantling of many hurdles for integration, and also tax incentives".

1. Criticizing the traffic light coalition's plan, the AfD argued that providing tax relief to foreign expert personnel is a form of discriminatory policy.
2. In response to the planned tax relief for foreign experts, Klaus Holetschek from the CSU expressed concerns about potential social unrest and potential violation of the equality principle in the Basic Law.
3. The leader of the Left party, Sahra Wagenknecht, voiced similar concerns, suggesting that the federal government should focus on employing specialists already in Germany instead of offering tax incentives to foreign experts.
4. In an interview with the "Welt" newspaper, Union Finance Minister Mathias Middelberg argued that making working in Germany more attractive rather than providing tax incentives to a specific group of immigrants would be a more effective solution.
5. The proposed tax relief for foreign expert personnel has faced criticism from German politicians across the political spectrum, with some arguing that it could widen income inequality within the country.
6. Steffen Hebestreit, the government spokesman, defended the plan, stating that the aim was to attract experts to Germany in the face of a skills shortage, and that tax relief would be granted within a specific income range.
7. The head of the German Institute for Economic Research, Marcel Fratzscher, also defended the plan, suggesting that it would help make Germany more attractive for highly qualified labor and give Germany a competitive edge in Europe.
8. In response to the traffic light coalition's plan, opposition parties have called for a more holistic approach to combat the skills shortage, including improving the integration process for immigrants, reducing bureaucratic hurdles, and improving the overall welcoming culture in Germany.
9. The planned tax relief for foreign expert personnel is just one part of a broader discussion about how to address Germany's skills shortage, with some advocating for a more comprehensive approach that includes investment in education and training programs for both German and foreign workers.

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