As of today, the factions behind the Grand Coalition apparently wanted to recall: after a billion-dollar pension package, the Bundestag has also decided on extensive relief for families.
The law passed by Parliament in the evening provides for the increase of child benefit by 10 euros per child on 1 July 2019. It also provides for higher tax exemptions and compensation for the so-called "cold progression" in the tax rate. Federal Finance Minister Olaf Scholz (SPD) had previously been able to enforce these plans in the Cabinet.
"The disposable income of families are strengthened by a total of nearly ten billion euros annually," said SPD family politician Michael Schrodi. The CSU finance expert Hans Michelbach spoke of a "big hit". He calculated that a couple with two children and average income would be relieved of 470 euros per year, a single for 207 euros.
GroKo plans further increases in child benefit
However, the Federal Council must still approve the legislative package. If this happens, the tax burden for families will decrease by around 9.8 billion euros annually. The child allowance should increase in two stages from 7428 to 7812 euros. The basic allowance to secure the ministry of existence is also increased in two stages from 9000 to 9408 euros.
In the future, the child allowance should amount to 204 euros per month for the first and second child, 210 euros for the third child and 235 euros for each additional child. For the following years, the Grand Coalition of CDU, CSU and SPD plans further increases in child benefits, but these are not yet included in this law.
Green and leftists criticized low-wage earners paying little or no taxes would not benefit from the reliefs. Lisa Paus of the Greens argued that three million children lived in poverty in Germany - but their families in particular received "not a single euro" from the promised relief.
Michelbach rejected the allegations. "Tax relief can only take place where taxes are paid," he said in the Bundestag. On the part of the SPD it was pointed out that low earners would be relieved elsewhere, for example with social contributions.
Job tickets will also be tax-free in the future. If a company grants its employees a free or discounted ticket for buses and trains, the cost savings had to be taxed in principle so far. This regulation has now been abolished by Parliament. This should encourage workers to use public transport, the statement of reasons states.
At the same time, the provision of an operating bike is also tax-free. In addition, electric cars and hybrid vehicles will benefit from corporate car taxation in the future.