Saxony: inflation compensation brings families plus of 1150 euros

Dresden (dpa/sn) - The adjustment for inflation in income tax decided by the Federal Council will bring Saxon families with two children an average plus of 1150 euros in the coming year.

Saxony: inflation compensation brings families plus of 1150 euros

Dresden (dpa/sn) - The adjustment for inflation in income tax decided by the Federal Council will bring Saxon families with two children an average plus of 1150 euros in the coming year. This was announced by the Ministry of Finance in Dresden on Friday after the decision of the state chamber. "For the Saxon middle class, i.e. the craftsman, the nurse or the engineer, there will be more net of the gross in the wallet in the coming year," said Finance Minister Hartmut Vorjohann according to the announcement. Other taxpayers such as pensioners also benefited from the measures, said the CDU politician.

On Friday, the Federal Council gave the go-ahead for inflation compensation in income tax. This ensures that the state will not also benefit from the high prices in the coming year. The so-called cold progression, a kind of secret tax increase caused by inflation, is offset. The basic allowance, i.e. the income up to which no tax has to be paid, increases by 561 euros to 10,908 euros. At the same time, the Federal Council decided to increase child benefit to a uniform amount of EUR 250 per month and child.

The Ministry of Finance in Dresden calculated how the measures would affect the income of Saxon families, based on average earnings in Saxony. In 2020, this was 32,440 euros gross. A single person without children paid about 210 euros less in taxes in the coming year. Due to the increased child benefit and the increasing child allowance, a family with two children and an average gross income of 64,880 euros would have around 1150 euros more at their disposal, it said.