Left criticizes deductions
An average of 193 euros remain from the energy flat rate
07/10/2022, 4:40 p.m
In September, working people can look forward to a 300 euro state subsidy to help with the high energy prices. On average, however, only two-thirds remain on a net basis. The left speaks of a “bitter sham”.
According to the Federal Ministry of Finance, an average of 193 euros net of the 300 euros energy flat rate will reach the employees. This emerges from a response from the ministry to a request from the left-wing faction, as reported by the newspapers of the Funke media group.
The energy allowance for employees subject to income tax is paid out in September. According to the Ministry of Finance, the range of deductions is between 0 and 142.42 euros, depending on salary. The ministry uses data from the Federal Statistical Office for the calculation, as reported by the Funke newspapers. According to this, the average gross annual income for full-time employees was 54,304 euros last year. “Assuming no further deductions, in this average case there would be a deduction of 107 euros on the energy price flat rate,” says the answer to the left-wing request.
According to the Ministry of Finance, the costs of providing the 300 euros per person would amount to 13.8 billion euros. However, since 3.4 billion euros would be withheld through wage tax, income tax and the solidarity surcharge, the balance of the reduced tax revenue would be around 10.4 billion euros. These would be divided between the federal and state governments, each with 4.4 billion euros, and the municipalities with around 1.6 billion euros.
Left faction leader Dietmar Bartsch described the energy cost allowance to the Funke newspapers as a “bitter deceptive package”: “The energy cost allowance should be tax-free and, above all, paid to pensioners and students. Top earners and ministers should not get this benefit,” said Bartsch. Bartsch finds it “highly problematic” that the federal states and municipalities would have to take on the majority of the financing.