relief for the economy
Lindner package grows to seven billion euros
8/29/2023, 4:13 p.m
While the traffic light ministers are meeting in Meseberg, a draft for Lindner’s growth opportunities law is already leaking out. The green blockade was said to have done the matter good. The relief amount for the economy increases to over seven billion euros.
According to a media report, the federal government wants to relieve the economy of tax burdens more than previously planned. Overall, the draft for the Growth Opportunities Act now provides for an annual relief volume of 7.035 billion euros for the period up to 2028, reported the “Handelsblatt”, citing government circles. The relief volume had previously been estimated at around 6.6 billion euros. According to Reuters, the draft puts the tax shortfall at 2.6 billion euros for the federal government, 2.5 billion euros for the states and 1.9 billion euros for the municipalities.
The draft law is to be passed at the cabinet meeting in Meseberg, Brandenburg. This started on Tuesday afternoon and is expected to last until Wednesday afternoon. The cabinet decision on the Growth Opportunities Act was originally planned two weeks ago. At that time, the Green Family Minister Lisa Paus had lodged an objection because of the dispute with the FDP leader and Finance Minister Christian Lindner about the financing of basic child security.
According to the “Handelsblatt”, the temporary introduction of degressive depreciation for residential buildings was newly included in the law. It is intended to apply to buildings whose construction begins after September 30, 2023 and before October 1, 2029. The tax offsetting of losses will therefore be slightly expanded again. In the future, no longer 60 but 80 percent of the losses should be tax deductible within four years.
After being blocked by Paus: did me good
As already planned, negative income up to an amount of ten million euros for individuals and 20 million euros for spouses can be deducted from the total income of a previous assessment period. In addition, an investment premium “to promote the transformation of the economy in the direction of more climate protection in particular” and further tax breaks in the corporate sector are planned.
“The two-week delay shouldn’t have been, but it did the project good,” the “Handelsblatt” quoted from government circles. Officially, the Ministry of Finance initially did not want to comment, referring to the ongoing cabinet deliberations.