SHARE
COPY LINK

POLITICS

CSU demands better tax breaks for commuters

The CSU, the Christian Social Union of Bavaria and sister party to Chancellor Angela Merkel’s CDU, is putting forward its own tax concept that would see more money in the pockets of average working citizens and families.

CSU head Erwin Huber told the Welt am Sonntag that, among other things, he would reintroduce the commuter tax allowance and increase the amount of child support given to families.

At the start of 2007, the government cut back the commuter tax allowance so that only people who travel distances over 20 kilometres to work can claim money back. Huber says the old regulations were better.

“Given the high price of petrol, the commuter tax allowance of 30 cents starting from the first kilometre should be reintroduced for everyone, as quickly as possible,” Huber said. “Driving to work is hardly like driving to the golf range.”

Although Germany’s current economic upswing has reduced the number of unemployed in the country by about a million, Huber acknowledged that food, fuel and energy have all become more expensive.

”We’ve managed to cut unemployment insurance contributions, now we have to cut taxes,” he said.

Huber took over from Edmund Stoiber as head of the CSU in autumn 2007, but since then, the party has not managed to improve its performance in the polls. In September, Bavaria will hold regional elections and it is uncertain whether the CSU will be able to hold onto its two-thirds majority.

Huber has openly stated that he has made it a personal mission to increase the party’s profile on a national level. He plans to present his tax concept to the CDU and SPD in Berlin by mid-April.

POLITICS

Germany’s Scholz rejects calls for later retirement in Labour Day message

German Chancellor Olaf Scholz (SPD) has rejected calls for later retirement in a video message for Labour Day published on Wednesday.

Germany's Scholz rejects calls for later retirement in Labour Day message

“For me, it is a question of decency not to deny those who have worked for a long time the retirement they deserve,” said Scholz.

Employees in Germany worked more hours in 2023 than ever before: “That’s why it annoys me when some people talk disparagingly about ‘Germany’s theme park’ – or when people call for raising the retirement age,” he said.

Scholz also warned of creating uncertainty due to new debates about the retirement age. “Younger people who are just starting out in their working lives also have the right to know how long they have to work,” he said.

Scholz did not explicitly say who the criticism was targeted at, but at its party conference last weekend, the coalition partner FDP called for the abolition of pensions at 63 for those with long-term insurance, angering its government partners SPD and the Greens.

Scholz saw the introduction of the minimum wage nine years ago – and its increase to twelve euros per hour by his government – as a “great success”. “The proportion of poorly paid jobs in our country has shrunk as a result,” he said.

READ ALSO: EXPLAINED: Is it worthwhile to set up a private pension plan in Germany?

However, he said there were still too many people “who work hard for too little money,” highlighting the additional support available through housing benefit, child allowance and the reduction of social security contributions for low earners.

“Good collective wage agreements also ensure that many employees finally have more money in their pockets again,” he added. 

And he said that the country wouldn’t “run out of work” in the coming years.

“On the contrary! We need more workers,” he said, explaining that that’s why his government is ensuring “that those who fled to us from Russia’s war in Ukraine get work more quickly.”

Work means “more than making money,” said Scholz. “Work also means: belonging, having colleagues, experiencing recognition and appreciation.”

SHOW COMMENTS