The SPD has rejected the plans of Federal Finance Minister Olaf Scholz (SPD) to largely abolish the solidarity surcharge. "We want to achieve step by step more tax justice, but certainly not distribute billions of tax gifts.The money we could better use for investment in education and climate protection," said the deputy chairman of the SPD parliamentary group Achim Post.
Finance Minister Olaf Scholz (SPD) had submitted a bill that stipulates that the tax on income tax from 2021 should be abolished for 90 percent of the taxpayers. This is to prevent someone whose salary exceeds the tax threshold of one euro from being burdened in full. 3.5 percent of taxpayers would have to pay the full rate of 5.5 percent.
The CDU welcomed the bill, but at the same time stressed that the party continues to call for the complete dismantling of the soli in the long term. "It is good that Federal Finance Minister Olaf Scholz is now implementing the coalition agreement and is taking the first step to reduce the soli," said Union faction leader Ralph Brinkhaus. "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 soli and is a matter of reliability for us."
The solidarity surcharge, Soli for short, had been introduced in 1991. Among other things, the reunification was to be financed. Since 1998, the additional tax has been 5.5 per cent of income tax and corporation tax. Overall, he brought the state in the financial year 2018, according to Ministry of Finance 18.9 billion euros. In addition to employees, traders such as self-employed craftsmen pay the levy.