Compensation for price increase
Lindner: “I think that’s a requirement of fairness”
08/20/2022, 9:05 p.m
The FDP’s plans for a new relief package are causing heated discussions within the traffic light coalition. Finance Minister Lindner once again reiterated his call for tax cuts. With a view to an agreement on tax reform, he is optimistic.
Federal Finance Minister Christian Lindner is sticking to his call for tax cuts. However, the measures planned by him against cold progression are not about relief, but “to prevent burdens,” said Lindner at a public dialogue as part of the federal government’s “Open Day”. In this respect, he rejected criticism that his plans did not mean targeted relief for people with low incomes. “We have to do something for these people,” he assured, referring to the housing benefit reform planned for the coming year and the planned citizens’ benefit as a replacement for Hartz IV.
“The adjustment for inflation must be separated from this,” Lindner clarified with a view to the tax. Cold progression describes the effect that wage increases associated with inflation are offset by higher taxes. This particularly affects people with middle incomes, said Lindner. Unfortunately, the means are currently lacking to relieve them of tax burdens, but there should be “protection from burdens” for them.
The coalition is currently struggling to find the new relief package to compensate for the high price increases. The SPD and the Greens are particularly pushing for direct payments for low-income households, but also for measures in favor of pensioners. Compared to ntv, Lindner was optimistic about an agreement on tax reform within the traffic light government. “The tax adjustment for inflation, the protection against a tax increase: I consider that to be an imperative of fairness to do that.” About the resistance of the Greens, he said: “I can’t imagine that anyone will be against it in the long term.”
Lindner insists on a share pension
Lindner wants to continue to adhere to the debt brake in the coming year: “It is constitutionally required. I would not consider a renewed exception to the debt brake to be compatible with the Basic Law.” The state budget had reached its limits. “That’s why we have to be very careful with the funds now.”
At the public dialogue, the Minister of Finance again rejected further demands for relief, such as a successor regulation for the nine-euro ticket, as well as an excess profit tax on additional profits made by corporations as a result of the crisis. He also rejected an increase in inheritance tax or a re-imposition of wealth tax. During the citizens’ dialogue there were loud calls, above all for the continuation of the nine-euro ticket and for more social justice in government policy.
Lindner, on the other hand, emphatically insisted on the implementation of the share pension agreed in the coalition agreement. In principle, he wanted to stick to the system of pay-as-you-go pensions, but “we want to start by building a reserve into this pay-as-you-go pension,” he replied to a citizen’s question. This should ensure that pension contributions will not increase so much in the future.