In Germany, the finance minister is planning tax cuts totaling 10 billion euros to help workers hit by rising prices. Not everyone thinks Christian Lindner’s suggestions make sense. But Chancellor Olaf Scholz expressed his approval.
The fight against “cold progress”
Lindner explained that he wanted to fight so-called “cold progress” above all.
Financial experts understand a freeze on progress to mean creeping tax hikes that result from higher incomes being eaten up by inflation, while workers still have to pay more in taxes. Lindner wants to compensate for this cold progress.
Do the rich benefit the most?
Critics of his plans complain that people who earn more and pay more taxes also benefit more from Lindner’s plans. Andreas Audrecht, deputy group leader of the Greens, said: “The tax cuts worth billions, from which top earners benefit three times more than low earners, ignore reality.” According to Audrecht, the plans were not up to date.
The basic allowance is to be increased to EUR 10,633 in 2023 and EUR 10,933 in 2024. However, Lindner also plans to increase the amount from which the top tax rate is to be paid: but only from a taxable income of 61,972 euros in 2023.
There had just been an uproar against Lindner after the Minister of Finance had spoken of a “free spirit” on the 9-euro ticket, which he did not want to support.
Netizens have noticed that all MPs have a free 100 Bancard and that Christian Lindner and his wife, both of whom have left the church and don’t pay church tax, got married in a church.
A little more hair growth in Germany
According to Lindner’s plans, child benefit is to be increased by a few euros per month. This is to be increased to 227 euros per month for the first two children in 2023. For the third child, the parents should also get 227 euros. For the fourth child it remains at 250 euros. In 2024, Lindner wants to increase child benefit for the first three children to six euros a month.
a look beyond the borders
In Scandinavia, the price increase in Denmark was 13.2%, the highest since last year – such inflation has not been seen since February 1982. This is due to increases in electricity, gas, fuel and food prices.
Food prices rose particularly sharply in Norway in July.
Due to the good news from America, there is a party mood in Frankfurt.
There is good news from across the Atlantic: In the US, so-called core prices – excluding the volatile food and energy categories – rose just 0.3% from June to July, the smallest monthly increase since April. Overall, inflation was higher at 8.5% in July, compared to 9.1% in June in the same month last year.
The seemingly good news from the United States had an encouraging effect on the German stock market. The DAX closed 1.2 percent higher on Wednesday afternoon.