German FinMin pitches $10B tax cuts to ease inflation pain

Aug 10, 2022, 3:31 AM | Updated: 6:33 am

German Finance Minister Christian Lindner attends the weekly cabinet meeting at the chancellery in ...

German Finance Minister Christian Lindner attends the weekly cabinet meeting at the chancellery in Berlin, Germany, Wednesday, Aug. 10, 2022. (AP Photo/Michael Sohn)

(AP Photo/Michael Sohn)

BERLIN (AP) — Germany’s finance minister said Wednesday that the government plans to make tax cuts worth more than 10 billion euros ($10.2 billion) to benefit broad sections of the population squeezed by high energy costs and inflation.

Finance Minister Christian Lindner said about 48 million people in Germany would profit from changes to the tax system designed to prevent them from being taxed more than their pay increases.

Child benefits will also be raised in the coming years, he said.

The plan was criticized by the Greens, who are part of a three-party governing coalition in Germany along with Lindner’s pro-business Free Democrats. Their representatives have noted that high earners will see the biggest absolute gains from the proposed tax cuts, while those on low incomes will save much less.

But Chancellor Olaf Scholz of the Social Democrats expressed support for the plan.

Scholz’s spokesman, Steffen Hebestreit, said the tax cuts were among a series of measures intended to tackle high energy costs and inflation. “As such I would say there’s general goodwill on the part of the chancellor on this question too,” he said.

Germany’s powerful industry lobby group BDI also voiced support for the plan, saying it was important to avoid pay increases leading to “hidden tax rises” for skilled workers.

Official figures show inflation dipped slightly to 7.5% in July compared to the same month last year, from 7.6% in June. Price rises have been fueled by a sharp increase in energy costs linked to Russia’s attack on Ukraine.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

21 hours ago

Near-total abortion ban in Arizona dates back to Civil War era...

Associated Press

Near-total abortion ban dates back to 1864, during the Civil War, before Arizona was a state

The near-total abortion ban resurrected last week by the Arizona Supreme Court dates to 1864, when settlers were encroaching on tribal lands.

22 hours ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

2 days ago

Speaker of the House Mike Johnson...

Associated Press

House Speaker Mike Johnson says he will push for aid to Israel and Ukraine this week

House Speaker Mike Johnson said Sunday he will try to advance wartime aid for Israel this week, along with funding for Ukraine.

2 days ago

President Joe Biden speaks at a campaign rally Saturday, March 9, 2024, at Pullman Yards in Atlanta...

Associated Press

US shoots down ‘nearly all’ Iran-launched attack drones as Biden vows support for Israel’s defense

Joe Biden cut short a weekend stay at his beach house to meet with his national security team as Iran launched an attack against Israel.

3 days ago

Protesters in Phoenix shout as they join thousands marching around the Arizona state Capitol after ...

Associated Press

Abortion ruling supercharges Arizona to be an especially important swing state

A ruling this week instituting a near-total abortion ban supercharged Arizona's role, turning it into the most critical battleground.

4 days ago

Sponsored Articles


Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.


DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.


Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

German FinMin pitches $10B tax cuts to ease inflation pain