Greens reject Lindner's proposal for tax relief - and criticize it

The Greens reject Finance Minister Christian Lindner's proposal to compensate for cold progression.

Greens reject Lindner's proposal for tax relief - and criticize it

The Greens reject Finance Minister Christian Lindner's proposal to compensate for cold progression. "Tax relief in the billions, from which many earners benefit three times as much in absolute terms as less earners - that is not up to date," said the financial policy spokeswoman for the Greens parliamentary group, Katharina Beck, the editorial network Germany. "It would be the other way around: Strong shoulders would have to carry more than those with a low income and not be disproportionately relieved."

She also criticized the FDP leader's rejection of an excess profit tax: "In terms of financial policy, it is unclear how the desired debt brake is to be adhered to with this additional proposal worth billions if at the same time the possibilities for additional income are blocked, such as by an excess profit tax." According to insiders, Lindner wants adapt the tax system to inflation and also increase child benefits to relieve families.

On Wednesday (10:00 a.m.) Lindner will present the cornerstones of an “Inflation Compensation Act”. Lindner wants to dismantle the so-called cold progression – the term describes the effect that someone slips into a higher tax rate due to a wage increase that at most compensates for inflation and thus ultimately has less money in their pocket in relation to purchasing power.

According to a report by "Spiegel", Lindner's concept will have a volume of around 10.1 billion euros in the coming year. The plan is not only to return the Treasury's inflation gains from this year, but also to increase child benefits.