Kühnert pushes for fairer income tax system
SPD's Kühnert criticizes the FDP's promise of no tax hikes for the wealthy, stating, "The wealthiest 5% shouldn't shift the burden to the majority of hardworking Germans."
General Secretary of the SPD, Kevin Kühnert, insists on a radical income tax reform to alleviate the financial pressure on 95% of German taxpayers. "If you protect even the richest from tax increases, it's the rest of the population who ends up footing the bill – whether filling at the gas station, shopping, or paying social security contributions," Kühnert stated in a Rheinische Post interview.
The majority of affected individuals work and don't rely on benefits, yet their income is significantly spent on rent, mortgages, groceries, transportation, and family expenses.
2024: Relief for the Middle Class
"2024 should be the year this burden is lifted," Kühnert proposes. "This demographic already carries the bulk of the tax burden in Germany due to consumption taxes." To accomplish this, Kühnert advocates for structural relief for these taxpayers, echoing his call for reduced income tax and altered consumption tax structures.
Counter-financing Measures
When addressing the responsibility for financing the reform, Kühnert targets the "very strong shoulders," those who have reaped benefits from tax cuts for 30 years. He confidently anticipates Chancellor Scholz's support for the tax reform within the coalition.
Diving deeper into Kühnert's tax reform proposals, the focus is on income tax fundamentals, with the aim of redistributing the tax burden more equitably amongst taxpayers. This could pave the way for measures like boosting the basic allowance, adjusting tax thresholds, targeting middle and low-income groups, and promoting business growth.
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In-Depth Insights:
- Basic Allowance Increase – To reduce the number of taxpayers subject to increased income tax rates, consider boosting the basic allowance for taxpayers.
- Benchmark Value Shift – Rebalance the benchmark values of the income tax rate, allowing more individuals to fall into lower tax brackets.
- Tax Cuts for Middle and Lower Income Groups – Introduce tax breaks specifically for the middle and lower income brackets, ensuring an equitable distribution of tax benefits.
- Tax Incentives for Growth – Implement tax incentives for businesses, which in turn could generate jobs and economic growth, benefiting taxpayers.
- Redistributive Policies – Adopt redistributive tax policies, including progressive taxes for the rich and the reallocation of funds to social support programs, in an effort to combat income disparities.
- Fiscal Responsibility – Ensure financial stability and maintain a balanced budget by carefully planning and implementing counter-financing measures.
- Public Consultation – Engage in open dialogue with various stakeholders, including taxpayers, businesses, and experts, to ensure the reform is well-received and well-designed.
