Asked to pay
Up to 144 euros: Many families and single parents now pay higher taxes
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According to calculations by the German Economic Institute, many taxpayers will be burdened more heavily this year. Families with low and average incomes and single parents are particularly hard hit.
The year starts with bad news for low and average earners. According to current calculations by the German Economic Institute (IW), most taxpayers will be burdened higher. It is difficult to understand that it primarily affects low-income families, single parents and other people with low to average earnings.
The IW is calling on the traffic light coalition to relieve these population groups by paying the promised climate money.
Single parents and families with little money are hit particularly hard
The IW’s evaluation makes it clear that high earners get off better than others. A family with two children and a combined gross annual income of 130,000 euros will have 262 euros more at the end of the year, while a family with an annual income of 42,000 euros will have 33 euros less. Single parents with one child are hit particularly hard. With an annual gross income of less than 36,000 euros, a single parent would have a loss of 144 euros. A single person with an annual gross income of 50,000 euros per year, on the other hand, would “only” pay 40 euros more Taxes and expenses.
Taxpayers pay for traffic light failures
“The traffic light had been struggling for weeks to find a solution to the budget dispute. The government’s failures and the inappropriate and unconstitutional budget policy will ultimately have to pay for the taxpayers,” writes the IW.
It is difficult to justify the fact that single parents and families with already low incomes are now the most burdened. As the IW explains, the payment of climate money, which the traffic light had already intended to compensate for the rising CO2 price, would now be necessary in order to adequately relieve the burden on low incomes. The traffic light coalition had already promised this in its coalition agreement to compensate for the rising CO₂ price. So far, however, there has been no mention of this.
Consumers are asked to pay in numerous areas
But it’s not just the tax burden that many citizens face higher, they also have to dig deeper into their pockets in other areas with the turn of the year: electricity and gas are becoming more expensive due to the expiry of the energy price brake. The prices for gasoline and diesel are rising due to the increase in CO₂ taxes, but the costs for local public transport are also increasing due to higher personnel and energy costs. Social security contributions have been increased, and health insurance contributions are to follow. Consumers can also expect higher prices in the catering industry; VAT, which was reduced to 7 percent during the pandemic, will increase again to 19 percent in 2024.
This article originally appeared on PARENTS.
Source: IW.de, tagesschau.de, hna.de