2023-09-21 09:34:01
The city state of Hamburg is enriching the current tax debate with an unusual initiative: While almost all reform concepts aim to allow the top tax rate of 42 percent to take effect later, the red-green state government is pushing for the opposite. She has introduced a draft law to the Federal Council, according to which the top rate of 42 percent will not apply next year at 66,760 euros, but at 62,809 euros. The Senate wants to partially correct the adjustments made with the Inflation Compensation Act. Anyone who has to pay tax on 66,761 euros next year should pay 356.18 euros more. But the compression of the tariff would also have a negative impact on lower incomes, albeit significantly less. For 25,000 euros, 3067.59 euros would be due instead of 3057.59.
The Hamburgers’ justification is: Higher incomes would be unduly relieved. This is neither constitutionally required nor does it correspond to the requirement of taxation based on ability to pay. Rather, higher incomes should be appropriately contributed to the financing of the state. “In view of the current tense budget situation, full inflation compensation, especially in the area of the top tax rate, would lead to significant tax shortfalls, which would lead to unacceptable cuts elsewhere.” The people of Hamburg are also against the planned inflation compensation when it comes to solidarity. All in all, they hope for additional revenue of 3.63 billion euros, from which the federal, state and local governments would benefit according to the usual formula.
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