Berlin (dpa) - Two and a half years ago, the CDU / CSU and SPD had agreed in the coalition agreement to raise child benefit by EUR 25 per month. After an increase of 10 euros last summer, an additional 15 euros will be added from next year. This is a central component of the so-called Family Relief Act, which the cabinet launched on Wednesday.
According to Finance Minister Olaf Scholz (SPD), families in Germany will be relieved of around twelve billion euros annually if the Bundestag and Bundesrat approve the legal plans. In addition, a number of other tax breaks are planned - not only for families with children, but also for people with disabilities and caring relatives.
FAMILIES: "What families do in Germany every day is invaluable for our society", family minister Franziska Giffey (SPD) justified the bill. After that, the child benefit for the first and second child rises to 219 euros per month from January, for the third child to 225 euros and from the fourth child to 250 euros. In addition, the child tax allowance is to be increased by more than 500 euros to 8388 euros. The Greens, however, complain that above all, high-income earners benefit: "Poor families in particular have no cent from the tax adjustments and increases in child benefit."
INCOME TAX: Regardless of their family circumstances, all taxpayers should be financially relieved. The basic tax-free allowance, on which no taxes have to be paid, will be increased from EUR 9408 to EUR 9696 in the coming year. The limit, at which the 42 percent top tax rate is required, increases from 57,052 euros to an annual income of 57,919 euros. A further increase in these income limits is planned for 2022.
According to calculations by the taxpayers' association, singles with a gross monthly amount of 2500 euros save only 6 euros per month. In the case of a family with two children, a single earner with a monthly income of 6000 euros would save about 15 euros a month - here, after all, there is the higher child benefit.
DISABLED: For taxpayers with a disability, the lump sums due to them are doubled and the tax evidencing obligations simplified - for example when proving certain travel expenses. The Federal Government's Disability Representative, Jürgen Dusel, said that many of those affected had higher expenses because of their disability. "These are mitigated by tax breaks."
The Social Association VdK and the German Disability Council welcomed the project, but also called for the lump-sum amounts to be made dynamic so that they increase automatically every year - this has not happened since 1975. Thanks to lump sums, certain sums can be deducted from tax at a flat rate without having to provide any supporting documents. Your specific height depends on the degree of disability.
CARE: The care of relatives should also be taxed more favorably. According to the government plans, the flat-rate care allowance for the two highest care levels is to be raised to 1,800 euros per year and thus almost doubled. For the lower care levels two and three, which have not been considered so far, a lump sum of 600 and 1100 euros will be granted in future.
The Ministry of Health estimates that more than half a million people could benefit. "Anyone who has decided to take care of someone close to them at home deserves thanks and recognition," said department head Jens Spahn (CDU). Eugen Brysch from the German Patient Protection Foundation complained, however, that two thirds of the caring relatives were no longer working and had nothing of the higher allowance: "After all, pensioners pay little or no taxes because of their low income."
© dpa-infocom, dpa: 200729-99-962393 / 3
Draft bill from the Ministry of Finance
Income tax law in the previous version
Federal child benefit law in the previous version