social
Laumann: The federal government overlooks people with low incomes
NRW Minister of Health Karl Josef Laumann (CDU) considers the federal government’s tax relief plans to be unbalanced. photo
© Rolf Vennenbernd/dpa
Finance Minister Lindner’s plans envisage billions in relief for citizens in view of inflation. But there is criticism from many quarters that the money is not being distributed fairly.
North Rhine-Westphalia’s Labor and Social Affairs Minister Karl-Josef Laumann (CDU) has accused the federal government of overlooking people on low incomes in its tax relief plans. Demands for relief for needy citizens are also coming from other directions.
“Those who earn little and therefore also pay a small amount of taxes have dropped out of almost all the relief that the federal government has initiated and still wants to bring, according to the statements known so far,” Laumann told the “Westdeutsche Allgemeine Zeitung”. (“WAZ”/Saturday).
In NRW alone, 1.6 million people worked for the minimum wage or a little more. Because these low earners paid little or no tax, they would have practically nothing from the increase in the mileage allowance, for example.
Laumann gave an example calculation: An employee who pays the lowest tax rate of 14 percent and can theoretically deduct 2,000 euros per kilometer will get 280 euros back from the tax. Anyone who pays the top tax rate of 42 percent and can deduct 2,000 euros per kilometer will get 840 euros.
Low-wage earners need “a better distance allowance that is adapted to their living conditions,” demanded Laumann. These people would also have to be significantly relieved of the rising prices.
Prime Minister Weil expects help for those in need from the federal government
In view of the drastically increased energy prices, the Prime Minister of Lower Saxony, Stephan Weil, is demanding support from the federal government for needy citizens. “My clear expectation is that the federal government will help these people get through autumn and winter well,” said the SPD politician to the “Welt am Sonntag”. State hesitation would be social explosives.
He assumes that Federal Finance Minister Christian Lindner (FDP) will accept more loans despite the debt brake in the constitution. “If we don’t have an emergency within the meaning of the Basic Law, then when?” Weil told the newspaper. With a reform of the housing benefit law, the circle of those entitled to housing benefit must be significantly enlarged.
Bartsch proposes “winter money”.
To cushion the high costs, Dietmar Bartsch, leader of the Left parliamentary group, proposes state “winter money” for those on low and medium incomes. “For small and medium-sized incomes, we need a one-off winter allowance against inflation and skyrocketing heating costs: 1,500 euros per household plus 600 euros for each additional household member,” Bartsch told the “Rheinische Post” (Saturday). “For financing, we propose the introduction of an excess profit tax and the start of a major tax reform.”
Bartsch demanded that those who profited from the crisis and the “German financial nobility” had to do their part to keep the country together. “For our country’s billionaires, there should be a winter soli – a one-time wealth levy – that could be used to finance the relief and capping of energy prices.”
Studentenwerk: The situation of the students is dramatic
Meanwhile, the German Student Union is urgently urging support for students. “The situation is dramatic,” said the general secretary of the student union, Matthias Anbuhl, the editorial network Germany (Saturday). “The increase in prices for electricity and heating hits the students hard – as do food prices.” More help is needed for this winter – not just for Bafög recipients. “And we need a fund that will step in when students can no longer pay their rent.” At the same time, Anbuhl asked the federal government to increase student loans.
From the tax plans presented by Federal Finance Minister Christian Lindner (FDP), 48 million citizens should benefit from 2023. It is about more than ten billion euros relief. In percentage terms, low earners are therefore relieved much more than high earners – but in absolute numbers it looks different. Politicians from the coalition partners Greens and SPD in the federal government also see a social imbalance.