Comment: Reiche should vote against Klingbeil's tax plans in the cabinet
The Minister of Economics is pointing out the flaw in the Finance Minister's reform plan. Without compensation for cold progression, the tax reform is a deception.
The German Cabinet, led by Chancellor Friedrich Merz, is set to discuss a tax reform proposal by Finance Minister Lars Klingbeil. The proposal comes after the Economics Ministry, led by Katherina Reiche, called for the government to adjust tax brackets to account for inflation, known as "kalte Progression". This adjustment was a regular practice under previous finance ministers, but not under Klingbeil.
Despite expected tax revenues of 1 trillion euros in 2026, the finance minister's draft budget does not include funds for this adjustment. The government has instead been increasing the number of civil service positions.
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.
