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Tax relief and child benefit: traffic light government plans breakthrough!
New tax relief and higher child benefits: Bundestag is planning measures to combat cold progression before the elections.
Tax relief and child benefit: traffic light government plans breakthrough!
The traffic light factions have agreed on an editorial agreement on the planned tax relief and increase in child benefit, which should now be quickly passed in the Bundestag. That's how he reports Deutschlandfunk that the legislative plan from the time of the traffic light government could be implemented before the new election in February. The changes aim to raise the tax-free subsistence level and curb so-called cold progression, which can cause tax increases when incomes only rise due to inflation.
One center of the debate is the increase in child benefit by five euros to 255 euros per month in the future. The Free Democratic Party (FDP) has formulated as a condition for its support that these measures must not result in any new bureaucratic costs for companies. However, in order to bring the law into force, it requires the approval of both the Bundestag and the Bundesrat. The sixth tax progression report is currently being discussed at the same time as the basis for the discussion about cold progression. As stated in the Bundestag report, these additional tax burdens affect around 35.1 million taxpayers, who are burdened with an average of around 273 euros.
Furthermore, Federal Finance Minister Christian Lindner (FDP) is of the opinion that citizens deserve greater relief given the current economic situation. The tax progression report estimates the impact of cold progression for 2024 at around 9.6 billion euros. Against this background, implementing the legal adjustments as quickly as possible could be of crucial importance for the citizens affected.