Germany announces €23bn in income tax cuts to help struggling households

9 comments

1. **From The Telegraph:**

   Germany has announced €23bn in income tax cuts to help struggling households with inflation.

   Christian Lindner, the German finance minister, on Wednesday laid out plans to raise income tax thresholds. The move will be worth €430 for every working adult in Germany over the next two years.

   The tax cuts are intended to offset so-called fiscal drag, where high levels of inflation drag workers into higher tax bands.

   Mr Lindner said: “It is simply a matter of fairness to adjust the tax system to inflation. The state must not be the winner of inflation.”

   Under Mr Lindner’s plan, Germany’s tax-free income tax allowance will be raised in three stages until 2026 and the threshold for the top rate of tax will also be increased, according to Reuters.

   **Read more here:** [https://www.telegraph.co.uk/business/2024/06/05/germany-plots-23bn-of-tax-cuts-to-help-struggling-household/](https://www.telegraph.co.uk/business/2024/06/05/germany-plots-23bn-of-tax-cuts-to-help-struggling-household/)

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3. Now, with your unwillingness to cut state subsidies, raise taxes elsewhere or take on more debt pray tell where the money is coming from? Can’t this party please slip into the irrelevance it has been deserving for decades?

4. “The move will be worth €430 for every working adult in Germany over the next two years”

   With that extra 35.83€ a month, I can now afford that…
   Uh…
   1/20th of my monthly grocery bill?

5. Tax cuts are important, but ‘surprisingly’, all the claims of the FDP only help the richest people.

6. Just compensating for inflation which for some reason isn’t an automatic mechanism.

7. Since it’s Lindner’s idea, I’m pretty sure that the “struggling households” belong to the upper class.

8. it’s only the semi automatic adjusting of all tax classes to the inflation there is no big tax cut for the working class as said by the liberals nor is there a big tax cut for the rich as said by the social democrats and greens

   the minimal standard of living at the moment ca. 11k has to be taxfree according to our constitutional court, that value (Existenzminimum ) changes according to inflation and then has to also be increased in the tax brackets

   if you want to cry how the German state can’t pay that please take a look at the 100 of billions we just agreed to give to pensioners

9. Would be better off investing that money into the failing services like Deutsche Bahn. Or why not do both by getting rid of the absolute insanity that is the “constitutional debt brake” and is preventing one of the most prosperous countries in Europe from actually investing in things future generations would benefit from.