Cold progression burdens taxpayers with 273 euros
Berlin: According to calculations by the German Taxpayers Federation (BdSt), the cold progression will cost taxpayers an average of 273 euros in 2024. The reason for this is the failure to adjust the tax brackets and allowances to inflation. This means that employees pay more taxes on the same income due to the so-called wage drift.
The BdSt criticized the fact that the government has not yet taken any measures to counteract the cold progression. “The government has failed to fulfill its promise to relieve taxpayers,” said BdSt President Reiner Holznagel.
The cold progression is a hidden tax increase that results from the fact that the tax brackets and allowances are not adjusted to inflation. As a result, taxpayers pay more taxes on the same income over time. This is because inflation increases the nominal value of income, but the tax brackets and allowances remain the same.
The BdSt is calling on the government to take immediate action to counteract the cold progression. Among other things, the tax brackets and allowances should be adjusted to inflation. The BdSt is also calling for the introduction of a so-called personal allowance, which would be exempt from income tax.
The cold progression is a major burden for taxpayers. According to the BdSt, the government must act immediately to relieve taxpayers of this hidden tax increase.
Kalte Progression belastet Steuerpflichtige mit 273 Euro
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