Energy, food, taxes: ideas competition for tax relief is gaining momentum

Energy, Food, Taxes
Ideas competition for relief is gaining momentum

In view of the high inflation, the traffic light debates possible further relief for consumers. The SPD warms to the topic of excess profit tax. The Greens keep an eye on food prices. FDP leader Lindner is cautious. He directs the focus to a major tax reform – next year.

In view of rising prices, the traffic light coalition wants to decide on further relief before the summer break, according to SPD parliamentary group leader Rolf Mützenich. Despite the relief packages that have been passed, we know that because of rising energy and food prices, middle society in particular needs further relief, said Mützenich t-online. In the debate, Agriculture Minister Cem-Özdemir focuses on food prices. SPD leader Lars Klingbeil is campaigning for an excess profit tax. The FDP, on the other hand, has little enthusiasm for individual measures. Meanwhile, opposition leader Friedrich Merz refers to what he sees as the limited possibilities of the state.

When asked whether he was in favor of the proposal to also pay pensioners the energy flat rate of 300 euros, Mützenich said: “I can imagine that. But we will discuss and decide that together.” Meanwhile, Minister of Agriculture Özdemir told the “Welt am Sonntag” that he was concerned about the “current price development for food due to the war in Ukraine”. If it goes on like this, “then I can tell you: After the relief package is before the relief package.”

Federal Finance Minister and FDP leader Lindner called inflation “the greatest threat to economic development and social peace” in the country. “Therefore, combating them must have priority in all important tasks,” he told Passauer Neue Presse. Lindner could imagine tax relief. “We’re doing a wage and income tax reform next year, adjusting the basic tax allowance and the tax rate for inflation. And if I have my way, there will be additional relief for those on small and medium-sized incomes.”

Merz: The state cannot compensate for everything

Verdi boss Frank Werneke believes that higher wages are inevitable. “Our course is very clear: permanently rising prices must be fully offset by permanently effective collective wage increases,” he said. He expects further relief for the population from the federal government – especially with regard to the significantly increased food prices.

SPD leader Lars Klingbeil wants to tax “crisis and war profiteers” more heavily and has his sights set on mineral oil companies in particular. It cannot be that “the mineral oil companies fill their pockets even more in the crisis,” he told the newspapers of the Funke media group. “A tax on war and crisis profits is an instrument that is on the table and that I think is very worth considering.”

This was also followed in the “Süddeutsche” by SPD faction deputy Matthias Miersch. “We have to ask ourselves whether certain profits are not immoral,” he said. “Politicians must now consider what answers they have in addition to financial relief that will get to the root of the problem.” This also includes skimming off so-called excess profits.

Meanwhile, CDU leader Friedrich Merz warned against the expectation that the state would compensate for all the additional costs caused by inflation. “Not every cost development can be offset by the public coffers,” he told the editorial network Germany. The relief proposals from the Union faction are on the table. These included the abolition of cold progression, a flat-rate energy price for pensioners and students and the reduction of electricity tax to the EU minimum tax rate.

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