The solidarity surcharge is to be abolished – at least for most of those who pay it today. CDU, CSU and SPD already agreed on this "clear first step" in the coalition agreement.
Now finance minister olaf scholz (SPD) is nailing his head to the wall and presenting a proposal that is also available to the deutsche presse agency. The plan in detail:
– the solidarity surcharge amounts to 5.5 percent of the corporate or personal income tax. According to the ministry of finance, it brought in a total of 18.9 billion euros for the state in fiscal year 2018. In addition to employees, tradespeople such as self-employed craftsmen also pay the levy.
– for 90 percent of today’s soli payers, the levy is to be abolished completely. 3.5 percent of them – the top earners – will pay it at the full rate of 5.5 percent of corporate or personal income tax. For everyone in between, the tax rate is to increase gradually. Thus 96.5 percent of all taxpayers were better off than today.
– this "mitigation zone" is intended to prevent someone whose salary exceeds the exemption limit by one euro from already being taxed at the full rate. A similar regulation already exists today in the soli law, but the full burden will be reached more quickly.
– the regulation has a slightly different effect on different groups of people. 91 percent of employees who pay the soli today were exempt from the soli altogether with the new regulation, according to calculations by the ministry of finance. 6.5 percent of them fell into the "mitigation zone. Among tradespeople, 88 percent of current solid payers would no longer have to pay the levy, while 6.5 percent would benefit from the reduced rates in the mitigation zone.
– the basis of assessment for the soli is income tax. Those who pay up to 16,956 euros in income or wage tax per year will no longer have to pay any soli at all in the future. For jointly assessed persons, this exemption limit is 33.912 euros.
– income tax may vary depending on various tax allowances. The income at which the soli becomes payable can therefore only be approximated. The ministry of finance has calculated that unmarried employees subject to social security contributions will be taxed up to a gross annual wage of about 73 euros.874 euros pay nothing. With higher income, the burden grew, until at about 109.451 euros in gross wages, the full 5.5 percent became due.
– a family with two children and a single earner would thus roughly be able to save up to a gross annual wage of 151.990 euro exempt from tax. From a gross annual wage of around 221.375 euro the full soli had to be paid.
– the ifo institute has determined for the "frankfurter allgemeine sonntagszeitung" (FAS) that the new regulation could save up to 1800 euros in taxes. In this high were thus relieved single-earner couples with children.
– if the solidarity surcharge on income tax was abolished for everyone, this would result in tax losses of 11 billion euros per year, according to ministry calculations. A dax CEO with an average taxable income of 5.8 million euros per year was thus taxed more than 140.Save 000 euro.