SPD and Greens Urge Union to Back Tax Relief Measures

The SPD and Greens are urging the Union to support a package of tax relief measures aimed at easing the financial burden on citizens, as proposed by the former coalition partners. These measures include addressing 'cold progression' in income tax and increasing child benefits. SPD Parliamentary Secretary Katja Mast appealed to the CDU/CSU, emphasizing the necessity of providing relief for hardworking citizens. Britta Haßelmann, co-leader of the Green faction, echoed this sentiment, urging the Union to enable these changes.

The proposed agreement involves adjusting the basic tax allowance to match inflation, increasing it by 312 euros in 2025 and an additional 252 euros in 2026. Child benefits are set to rise by five euros in 2025, with a further four-euro increase in 2026. The child tax allowance will also see incremental increases.

These measures, expected to provide 7.9 billion euros in relief, need approval from both the Bundestag and Bundesrat. However, despite these planned tax reductions and child benefit increments, many households may still see less net income due to rising social security contributions, CO2 levies, and increased contribution assessment ceilings.

For singles earning an average income, the financial impact could result in an additional burden of 33 euros, while couples with children might enjoy some relief. This situation highlights the critical need for the Union's support to ensure these adjustments provide tangible benefits to the broader population. The SPD and Greens are pressing for swift action, aiming for implementation by early 2025 to alleviate financial pressures before upcoming elections.