The economy wants higher earners to pay more


The economists Monika Schnitzer, Veronika Grimm, Achim Truger and Volker Wieland at a press conference at the end of March 2022.

(Photo: IMAGO/Future Image)

Berlin the economy advise the federal government to raise taxes for high-income households, according to a media report. In order to finance the expensive measures in the fight against the energy crisis, the top tax rate should be raised or, alternatively, an energy soli for higher earners should be introduced, the “Süddeutsche Zeitung” reported on Monday in advance, citing this annual report of the panel.

The five economists wanted the government packages against the inflation, which mainly affect people with little money, make them more social and affordable. The proposed measures would “increase the targeting of the overall package and signal that the energy crisis must be tackled in solidarity”.

According to the report, the report contains even more explosive fuel for the traffic light coalition: The economic experts rejected the tax plans of Finance Minister Christian Lindner (FDP) for cold progression – and sympathized with using nuclear power temporarily longer. The economists Monika Schnitzer, Veronika Grimm, Ulrike Malmendier, Achim Truger and Martin Werding want to officially present their report on Wednesday.

The five researchers explained that the government had decided on extensive relief, which was necessary because of the enormously increased prices. “However, it would have been helpful if the plans had been prepared much earlier,” says the paper, according to “SZ”.

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Previous measures such as the tank discount were often not very targeted and also benefited higher income groups to a large extent. The Council, on the other hand, is in favor of only relieving households that cannot cope with the energy prices. So especially citizens with little money who “spend a significantly higher proportion of their income on rent and groceries than households with higher incomes”.

Many save nothing and cannot keep up their consumption when prices rise like this. Inflation hits the bottom 20 percent twice as hard as the top 10 percent.

More: The FDP and economists warn of the SPD’s redistribution plans

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