The planned reduction of the solidarity surcharge should benefit more taxpayers than previously known. Finance Minister Olaf Scholz has come up with a bill that stipulates that the tax on income tax from 2021 should be abolished for 90 percent of taxpayers.
For another 6.5 percent, the levy falls at least partially away, the mirror reports. After exceeding the clearly increased exemption limit, it is therefore not immediately fully payable, but only gradually grows to 5.5 percent of the income tax debt. "As a result, 96.5 percent of today's soli payer are better off," the draft.
The reason why the solos are not abolished for all taxpayers is that the draft states that "social welfare considerations prevail because higher incomes should be taxed more heavily than lower incomes".
The soli surcharge is 5.5 percent of corporation or income tax. The levy was first levied in 1955. Overall, they brought the state in the financial year 2018, according to the Ministry of Finance 18.9 billion euros.
The draft talks about a "first step". The wording "in the first step" had already been agreed in the coalition agreement for 2021. It leaves the possibility of further steps open. However, unlike the CDU, the SPD considers no further steps necessary.
CDU calls for relief for all
Union faction leader Ralph Brinkhaus told the German Press Agency : "It is good that Federal Finance Minister Olaf Scholz is now implementing the coalition agreement and taking the first step towards reducing the soli.With 90 percent of taxpayers abolishing the solos, we relieve millions of people in Germany They all will have more net of gross in their pocket. "
However, the CDU politician insisted on taking further steps: "But we in the Union continue to stick to the goal of eliminating the solos for all taxpayers, which was promised at the launch of the solos and is a matter of reliability for us." Scholz's bill should now be discussed quickly and decided in the Bundestag.