Tax reform 2025: More net for everyone - Cold progression before the end!

Tax reform 2025: More net for everyone - Cold progression before the end!

The Federal Government plans to combat the so -called "cold progression" and at the same time increase child benefit, which could possibly have an effect on 2025. According to information from Berlin Live , SPD, Greens and FDP have agreed on a change in the law after long negotiations that should prevent an upcoming tax increase through inflation. The basic allowance, i.e. the part of the income that is not taxed, is to be raised by 312 euros to 12,096 euros from 2025. Further tax tariffs should also be adjusted, but the rich tax remains unchanged.

In addition, the child benefit will increase by five euros in early 2025, as reported Ruhr24 . Finance Minister Jörg Kukies has made it clear that some of the legislative projects, such as increasing child benefit and combating the cold progression, cannot yet be adopted in the current session period. Due to the political constellation, the minority government needs the approval of the opposition, in particular the FDP or the Union to bring the law in the Bundestag. Failure could have far -reaching effects on the planned relief for the citizens.

political tensions and election campaign

The election campaign between the parties has strongly shaped the negotiations. While the FDP was able to delete bureaucracy costs from the original draft in exchange for their consent, the green Sven-Christian Kindler expressed sharp criticism and pointed out dominant party tactics. By February 21, the Federal Council has time to approve the law, which is only due to two days before the new elections. Finance Minister Kukies is concerned that the political situation in Germany is currently very tense and there are many draft laws on the brink, especially those who strive for tax relief for citizens.