Bundesregierung: Kabinett beschließt Reform der Einkommensteuer
Finanzminister Lars Klingbeil will mit einer Reform der Einkommenssteuer kleine und mittlere Einkommen entlasten. Doch aus der Wirtschaft kommt starke Kritik.
The German federal government has decided to reform the income tax, despite internal criticism. The reform aims to relieve small and medium earners, according to the Federal Ministry of Finance, which is leading the initiative. Finance Minister Lars Klingbeil was unexpectedly absent from the cabinet meeting due to an issue with the government plane, which prevented a timely return to Berlin.
Instead, Klingbeil addressed journalists in the United States with a statement. The minister expressed satisfaction with the reform, stating that the decisions of the red-green coalition would be implemented as agreed. The coalition will bring more net income to citizens, partly through higher child allowances and a higher basic exemption amount.
The total relief volume amounts to ten billion euros for them. However, high earners and entrepreneurs will face additional burdens. The reform is set to take effect at the beginning of 2027 and will fully realize its impact in 2028. The top tax rate will start at an income of 250,000 euros, rising to 47 percent from 280,000 euros.
The Social Democratic Party views this as a "Superwealth tax," stating that it promotes justice, as stronger shoulders should bear more.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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