Social: Verdi boss on Lindner’s tax plans: “blatantly unfair”

social
Verdi boss on Lindner’s tax plans: “blatantly unfair”

The criticism of the tax relief plans by Federal Finance Minister Christian Lindner does not stop. Rejection comes from the Verdi union, among others. Its chairman, Frank Werneke, complained that those who have high incomes and are affected by the top tax rate would benefit first and foremost.

“Those who work hard every day but have a low income and are currently suffering the most from the price increase would hardly benefit – that’s blatantly unfair,” said Werneke of the “Rheinische Post”.

Werneke called for a comprehensive tax concept in which changes in the income tax rate would be offset by an increase in the top tax rate and an excess profit tax, which should be paid by companies that made disproportionately high profits during the crisis. “Employees who do not receive high salaries and who are in real need in view of the price development will not benefit from tinkering with the tax rate. Instead, another relief package with direct payments is needed – targeted for people with low to medium household incomes,” said the union boss.

High earners earn more

The Düsseldorf economist Jens Südekum found that it was “simply not the time right now” to relieve all income areas. “In view of the rising inflation, we need a redistribution from top to bottom, not the other way around,” he told the “Spiegel”. Economics Veronika Grimm had also criticized that a reform in which the higher earners nominally gain more came at the wrong time.

FDP leader Lindner presented his plans on Wednesday. 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 top earners – but in absolute numbers it looks different. Politicians from the coalition partners Greens and SPD see a social imbalance. Chancellor Olaf Scholz (SPD) had described Lindner’s plans as a “good premium” and part of an overall package with further relief.

FDP parliamentary group leader Christian Dürr defended his party leader’s plans and called for their support. It is an “important step for more tax justice,” Dürr told the German Press Agency. “The proposed measures are a real relief for the broad middle of our society, which keeps our state and our social security systems running day after day,” said Dürr. “My request to all critics is: to support Christian Lindner’s project.”

Union approval

CDU General Secretary Mario Czaja supported Lindner’s approach in principle: “We also think that tax relief for the broad middle by mitigating the cold progression is fundamentally right. This will relieve the burden on small and medium-sized incomes in particular,” said Czaja of the “Bild” newspaper. Czaja called on Chancellor Scholz to bring about a decision at the cabinet table. The parliamentary director of the CSU state group in the Bundestag, Stefan Müller, criticized: “Even minimal relief leads to an outcry in the traffic light. The traffic light is a left-wing government in which the FDP is going under,” said Müller of the “Bild”.

Above all, the exploding energy and sharply rising food prices are causing problems for many people. Chancellor Scholz does not therefore expect any social unrest, as he made clear on Thursday. Poverty researcher Christoph Butterwegge nonetheless warned in the “Rheinische Post”: “The energy and food prices, which are likely to continue to rise in the future, are likely to lead to social upheavals right down to the middle of society. Some middle-class families may also have to spend half their income on rent including heating. Therefore, poverty will continue to spread.”

Green party leader Ricarda Lang told the newspaper that to prevent a wave of poverty, short-term measures are needed to provide relief in autumn and winter to those most affected by rising prices. At the same time, however, Lang called for a “fundamental debate about justice, which we must also have in government.”

dpa