Tax reform: Tax reform in the Cabinet - What is supposed to change?
The CDU and SPD want to launch a central financial project - tax relief, especially for lower incomes. Will they also succeed in improving the general mood?
German Finance Minister Lars Klingbeil has submitted a draft income tax reform to the cabinet, aiming to provide relief to households with low and middle incomes, as well as families with children. The reform, set to take effect in 2027, is expected to bring annual relief of around €10 billion, with the full amount to be achieved in two stages by 2028.
The plan includes increasing the tax-free allowance, adjusting tax brackets, and introducing a new "super-rich tax" of 47% for incomes above €280,000. The reform also includes increases to the child allowance and tax-free allowances for employees.
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.
