Family Minister Paus wants to reduce child allowances
Greens and FDP are arguing about how the planned basic child security should be financed. Federal Family Minister Lisa Paus (Greens) is now making a new proposal – and bringing the reduction of child allowances into the conversation.
IIn the dispute between the Greens and the FDP over the financing of the planned basic child security, Family Minister Lisa Paus (Greens) has proposed a reduction in child allowances. “It is absurd that wealthy families are relieved much more of the child allowance than poorer families who only receive child benefit,” said Paus of the “Neue Osnabrücker Zeitung” (NOZ/Saturday).
The minister spoke out in favor of lowering the allowances and using the resulting additional tax revenue to finance part of the basic child security. “It would be a breakthrough to finally eliminate this injustice in the system,” she said.
The background is a complex regulation in the German tax system: Parents currently receive 250 euros per child per month from the state. At the same time, there are the so-called child allowances. When calculating the tax, these are deducted from the income, so that the tax burden is reduced.
The tax office automatically determines whether child benefit or allowances are more worthwhile for the parents. If it is the allowance, it will be offset against the child benefit that has already been paid out. Top earners benefit from this: Your tax savings are greater than the sum of the child benefit paid out.
Paus insists on twelve billion euros per year for basic child security
The traffic light coalition has agreed to bundle services from child benefit and child allowance to financial support for school trips in a basic child security system and to reach more beneficiaries with the services in the future. Whether that should also mean a multi-billion dollar financial increase is disputed, especially between the Greens and the FDP. Paus had registered a need of twelve billion euros.
The minister stays with it. “Twelve billion euros are at the lower end of what would be needed to significantly reduce child poverty in Germany,” said the “NOZ”.
Federal Finance Minister Christian Lindner (FDP) expects a significantly lower financial requirement for basic child security than Paus. In the project, he focuses on the simplification and digitization of family benefits.