After the cabinet decided on a significant increase in citizens’ money next year, the FDP has reiterated its demand for simultaneous tax relief.
“Working people should not always be asked to pay to finance higher social benefits. The middle part of our society must also be given tax relief,” said General Secretary Bijan Djir-Sarai to the German Press Agency. He specifically spoke out in favor of increasing the so-called basic tax allowance and the child tax allowance.
The allowances mark the part of the income on which no tax is due. They are regularly adjusted upwards. The basis is the statistically calculated subsistence minimum, i.e. the minimum amount that people need for the most necessary things to live.
The federal government prepares a so-called subsistence minimum report every two years. On this basis, the allowances have already been increased this year. A further increase is planned for next year.
Finance Minister Christian Lindner (FDP) recently called for a larger step in the budget debate in the Bundestag and spoke of possible additional relief of around 1.9 billion euros. An increase would support “the working people who keep our welfare state running in the first place,” said Djir-Sarai.
