Reduction of fiscal drag – Small money – Süddeutsche.de

• If you only have a small or medium incomes, profits hardly when the bracket creep should be abolished. The calculations show.
• From cold progression occurs when a taxpayer real indeed no longer has money to spend, but still needs to pay more taxes.

From Guido Bohsem

Calculated in euros and cents, the Wolfgang Schäuble (CDU) will affect proposed tax cuts for individuals only slightly. Who merely refers a small or medium incomes, announced by the Minister of Finance reduce the fiscal drag should hardly feel.

According to calculations by the Berlin tax professor Frank Hechtner a married worker is with two children and a gross salary per month 3500 € on end of the year have to pay 96 euros less tax and solidarity surcharge to the state as at present. Who deserves for singles only 1,500 euros, must reckon with a relief of 53 euros a year.

Your Forum Relieves mitigating the cold progression taxpayers really?

Who gets a raise, often has almost none. On the one hand, because he has to pay more taxes, on the other hand, because inflation also makes up part of the wage growth worthless. From 2016 Finance Minister Schaeuble wants to mitigate these so-called bracket creep and so relieve the taxpayer. A simple decision, because inflation is so low just anyway? your forum

What is bracket creep?

The situation is different for taxpayers with an annual income of more than 250 730 Euro from. This can keep more of their earnings through the desired adjustment of the cold progression per year 521 EUR (see table). However, top earners pay significantly more taxes than the low and medium income and have the bracket creep get therefore to feel stronger.

From cold progression occurs when the interaction of course income tax curve and inflation results that a taxpayer has real though not more money to spend, but still needs to pay more taxes. Since inflation was so low in the past two years, Schäuble sees no reason for a higher tax reduction – especially as the coalition also wants to raise the basic personal allowance. Also relieves the effect of bracket creep. In pike former calculation This makes about 34 euros.

Schäuble proposal came as a surprise, because he had spoken out for a long time against a tax cut. Even if he had pursued the action against the bracket creep in the black-yellow coalition.

According to the coalition of parties but have him mainly two reasons to step moved. On the one hand he wanted to SPD leader Sigmar Gabriel take the wind out of the sails. Gabriel had in fact argued in recent times repeatedly stressed it to take action against the effects of cold progression. He ushered in a change of course for the SPD one, had always rejected the tax cuts before the general election.

The additional tax revenues for the second so high that Schäuble had to worry about being overwhelmed by additional expenditure requirements of other ministries , He decided, therefore, prefer to get rid of the money in his senses and do something about the bracket creep. Other plans should be kept as in chess.

The SPD is not enough all

But it is precisely this consideration brings Schäuble now in conflict with the coalition partner SPD. The financial expert of the Group, Lothar Binding, although welcomed the plan by the Finance Minister to take action against the bracket creep. This is only true in times bubbling tax revenues. But that’s not enough of the SPD. “It now needs to be talked about the retroactive increase in the child allowance already in 2014″, said the Binding SZ. In return, the SPD will use. In this context, Binding wants to negotiate a higher child benefit even once. “This is then also to discuss how is to proceed accordingly.”

Support receives this Binding of control Professor Hechtner. According to him, raising the child allowance in 2014 would be constitutionally necessary anyway. “Also has the ninth subsistence government report confirms this,” said the expert. “In addition, the coalition should nachgedenken about the child support directly to increase in 2015 by six Euro -. To compensate so that it was not raised in 2014″ Previously Schäuble provides 2015 and 2016 gradually supplement the child benefit at six euros.