Berlin (dpa) - Finance Minister Olaf Scholz (SPD) has submitted the bill for a substantial reduction of the solidarity surcharge.
He was given on Friday to vote to the other ministries, as the German press agency learned from coalition circles. It states, "in the first step", about 90 percent of the payers would be completely relieved of income tax and assessed income tax. At first the «Spiegel» reported online about it.
The formulation "in the first step" was already agreed in the coalition agreement for 2021 and leaves the possibility of further steps open. However, unlike the Union, the SPD sees no need for more.
The soli surcharge amounts to 5.5 percent of the corporation tax or income tax, in total he brought the state in the financial year 2018, according to the Ministry of Finance 18.9 billion euros.
Union faction leader Ralph Brinkhaus told the dpa: "It is good that Federal Finance Minister Olaf Scholz now implements the coalition agreement and takes the first step to reducing the soli. By eliminating the solos for 90 percent of taxpayers, we relieve millions of people in Germany. They all will have more net of the gross in their pocket. "
However, the CDU politician insisted on taking further steps: "We in the Union, however, continue to stick to the goal of abolishing the solos for all taxpayers. This was promised at the introduction of the soli and is a matter of reliability for us. "Scholz's bill should now be discussed quickly and decided in the Bundestag.
The bill points out that more than 90 percent of the taxpayers would also be relieved, although not completely: For another 6.5 percent fall the levy at least partially, according to "mirror" in the law explanations. 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," says the draft.
Tax revenue 2018