Lindner for automatic adjustment of income tax to inflation

Christian Lindner

The Minister of Finance wants to help the taxpayer against the cold progression.

(Photo: imago/Metodi Popow)

Berlin Minister of Finance Christian Lindner advocates that the income tax will be automatically adjusted to the level of inflation in the future. That's only fair and spares very difficult political debates, he said FDPMinister in Berlin on Wednesday. It is not a question of relieving the burden on the citizens, but of automatically placing an additional burden on them inflation to prevent.

So far, high inflation has led to so-called cold progression: despite falling purchasing power, the same Steer are paid, so the relative tax burden on citizens increases. The federal government wants to compensate for this in the coming year.

The cabinet decided on Wednesday that the basic tax-free allowance would be increased and other benchmarks of the tax rate would be postponed. The inflation forecast from the spring was initially calculated, but the figures would be adjusted with the autumn forecast, said Lindner.

More: Cabinet decides on citizens' income, tax reform and higher home office allowance

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