Tax reform: Klingbeil warns of "opposition within the government" on taxes
After lengthy deliberations, the income tax reform agreed by the Union and SPD has made it to the Cabinet. However, the consensus on the course of relief is a bit of a tricky business.
Germany's planned income tax reform has sparked disagreement within the ruling coalition, with the Economics Ministry, led by Katherina Reiche, calling for further relief measures. The ministry's concerns were expressed in a letter, to which Finance Minister Lars Klingbeil responded by criticizing an "opposition within the government".
The cabinet is set to approve the reform on Wednesday, which aims to provide annual tax relief of €10 billion from 2028, focusing on small and middle incomes. The reform includes measures such as a higher tax-free allowance, changes to the top tax rate, and increased child benefit, and will be funded in part by a higher tax on high incomes.
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.
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