Labor market: Social association: Planned basic income tax rates too low

labour market
Social Association: Planned citizen income standard rates too low

With the planned introduction of citizen income at the beginning of next year, the SPD, Greens and FDP want to increase the standard rates for the needy

With the planned introduction of the citizens' allowance at the beginning of next year, the SPD, Greens and FDP want to increase the standard rates for the needy to around 500 euros. photo

© Friso Gentsch/dpa

The debate about the announced citizens' income continues. There is criticism of the amount of the new sentences - in both directions.

Of the social association Germany (SoVD) has criticized the rates of citizen income planned by Social Affairs Minister Hubertus Heil (SPD) as too low. Chairwoman Michaela Engelmeier told the newspapers of the Funke media group (Tuesday) that it was good that the citizens' allowance was coming, but that she was disappointed with the amount. "Here we stick to our demand: 650 euros from January 1st and 100 euros immediately for the transition." Those affected are already suffering from skyrocketing prices and ever-increasing inflation. Raising the standard rates only minimally, especially for children, is not enough.

The ruleset for the new citizen money, which is to replace the current Hartz IV system on January 1, should amount to 502 euros per month according to plans by the Federal Ministry of Social Affairs for single adults. A departmental vote is currently underway, and the federal cabinet is to discuss the draft on Wednesday. In addition, less strict requirements should apply to citizen income. People who receive citizen income should therefore not have to fear any cuts in benefits for six months, even if, for example, they miss appointments at the job center.

City day warns of additional burden for municipalities

The employer-oriented Institute of the German Economy (IW) criticized this planned six-month "trust period". "Until now, basic security should help those who can't help themselves. That's being softened by this waiting period," said IW economist Holger Schäfer to the newspapers of the Funke media group. It has been clearly demonstrated that the sanctions usually result in faster integration into the labour market effected.

The German Association of Towns and Municipalities, on the other hand, warned of an additional burden for municipalities. "Actually, in the crisis we now need a moratorium on new services and service promises," said managing director Gerd Landsberg on the Welt television station. Citizens' income is a core element of the coalition negotiations SPD, Greens and FDP. In his opinion, however, the goals of the coalition agreement would have to be adapted to the crisis.


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