20/14249: Antrag: Respect the wage gap requirement – relieve employees and small businesses – increase the basic tax allowance for 2024 to EUR 15,000 and increase other tariff brackets accordingly (PDF)
The German Bundestag is discussing a motion by the CDU/CSU parliamentary group to increase the basic tax allowance for 2024 to EUR 15,000 and to adjust other wage brackets accordingly. The aim is to relieve employees and small businesses and to take into account the high inflation rate.
Background
The basic tax allowance is the amount of income that is exempt from income tax. For 2023, the basic allowance is EUR 10,908. The wage brackets are the income ranges that are subject to different tax rates.
Proposal
The CDU/CSU parliamentary group proposes to increase the basic tax allowance to EUR 15,000 for 2024. This would mean that employees would pay less income tax on their earnings. In addition, the tariff brackets would be adjusted accordingly. This would result in higher net incomes for employees, especially in the lower income brackets.
Justification
The CDU/CSU parliamentary group justifies its proposal with the high inflation rate. Inflation has led to an increase in the cost of living, and many employees are struggling to make ends meet. The proposed increase in the basic tax allowance and the adjustment of the wage brackets would help to relieve these employees.
In addition, the CDU/CSU parliamentary group argues that the proposed measures would also benefit small businesses. Small businesses are often more dependent on their employees than large corporations, and they would benefit from the reduced labor costs that would result from the proposed measures.
Criticism
The proposal has been criticized by some economists, who argue that it would be too expensive and would not be effective in stimulating the economy. Others have argued that the proposed measures would benefit high-income earners more than low-income earners.
Outlook
The Bundestag is expected to vote on the proposal in the coming weeks. It is unclear whether the proposal will be passed.
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Drucksachen a new article on 2024-12-17 11:00 titled “20/14249: Antrag Lohnabstandsgebot beachten – Arbeitnehmer und Mittelstand entlasten – Den steuerlichen Grundfreibetrag für 2024 auf 15.000 Euro und weitere Tarifeckwerte korrespondierend erhöhen (PDF)”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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