Taxes: Agreement in Coalition: Tax Law to be Introduced to Cabinet
For his tax law, Finance Minister Klingbeil had to take a beating recently. Now it's supposed to clear the first formal hurdle.
The German government plans to introduce a reform of the income tax this week. The reform aims to benefit families with children and taxpayers with low and middle incomes, with relief totaling €10 billion annually from 2028. The package includes a higher tax-free allowance, a later top tax rate, increased allowances for expenses and child benefits, and higher tax-free bonuses for work on Sundays and public holidays.
To fund the relief, the wealth tax will take effect earlier and a new, higher tax bracket for very high earners will be introduced. The reform will be considered by the cabinet on Wednesday and then passed to the Bundestag.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
