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 This material may not be published, broadcast, rewritten or redistributed.

AP

British Prime Minister Liz Truss visits Berkeley Modular, in Northfleet, Kent, Britain, Friday, Sep...
Associated Press

UK’s Truss defends economic plan that sent pound tumbling

LONDON (AP) — British Prime Minister Liz Truss defended her economic plan Thursday and said she’s willing to make “difficult decisions” to get the economy growing. In her first public comments since her government’s announcement of billions in uncosted tax cuts roiled markets and drove the pound to record lows, Truss said Britain was facing […]
39 minutes ago
Associated Press

4th leak reported on Nord Stream pipelines in Baltic Sea

STOCKHOLM (AP) — A fourth leak on the Nord Stream pipelines has been reported off southern Sweden, the Swedish news agency said Thursday. Sweden’s coast guards told news agency TT that they have a vessel on the site of the leak, off Sweden. All four detected leaks are in international waters, two near Sweden and […]
1 day ago
Washington Wizards players including Rui Hachimura, center, and Isaiah Todd (14) work out in Tokyo,...
Associated Press

Warriors-Wizards games in Japan to woo NBA fans, sponsors

TOKYO (AP) — Japanese basketball fans will get to see NBA stars up close when the reigning league-champion Golden State Warriors take on the Washington Wizards in two preseason games. Not surprisingly, Stephen Curry and Japanese-born Rui Hachimura will be the star attractions for each team. And as clearly as the logo of Japanese online […]
1 day ago
In this undated 2021 photo provided by Humane Society International/Europe, chinchillas inside cage...
Associated Press

Welfare group reports severe breaches on Romanian fur farms

SIGHISOARA, Romania (AP) — In a dingy basement, chinchillas bred to provide the fashion industry with their fur bite the wire of cages that are stacked floor-to-ceiling with no natural light, as their babies struggle across the wire-mesh floors. The scene captured on video is among the findings from an undercover investigation into conditions on […]
1 day ago
Associated Press

Police: 2 killed, 10 injured in three-car crash in Texas

UVALDE, TEXAS (AP) — A road accident in Texas Wednesday evening killed two people and left 10 injured, police said. Authorities in Uvalde said the accident occurred around 6:30 p.m. on Highway 90 near the downtown area of Uvalde, KSAT-TV reported. Border Patrol agents reportedly saw a black truck speeding on the highway before crashing […]
1 day ago
FILE - Myanmar's leader Aung San Suu Kyi waits to address judges of the International Court of Just...
Associated Press

Suu Kyi convicted again, Australian economist gets 3 years

BANGKOK (AP) — A court in military-ruled Myanmar convicted former leader Aung San Suu Kyi in another criminal case Thursday and sentenced Australian economist Sean Turnell to three years in prison for violating Myanmar’s official secrets act, a legal official said. Suu Kyi received a three-year sentence after being tried and convicted with Turnell under […]
1 day ago

Sponsored Articles

...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
German FinMin pitches $10B tax cuts to ease inflation pain