Berlin.
The solidarity surcharge is only paid by a few, but remains controversial. Now he could soon be history for everyone.
Two years ago, the majority of employees were able to show more net than gross on their payslips: the controversial one solidarity surcharge was gone for 90 percent of the employees.
A year after the so-called “Solidarity Pact II to finance the costs of the German unity‘ expired, the solos for around 33 million employees were history. But since then, 10 percent of employees have had to pay the levy on their income or corporation tax, which was originally intended to finance the infrastructure of the new federal states.
But that could soon be over. From Tuesday, the Federal Fiscal Court will negotiate in Munich about the solos. A couple from Bavaria, who belong to the ten percent who still have to pay, had complained. The Association of Taxpayers (BdSt) is now using the procedure as a model lawsuit. He considers the levy to be unconstitutional and would like to have this clarified in court.
Lindner’s solidarity decision: SPD and Greens upset
Behind the purely legal question, however, there is also a political debate – and this is causing discord in the federal government. So had Federal Minister of Finance Christian Lindner (FDP) has just decreed that his house will not defend the solos with its own representative in the court proceedings – unlike his predecessor, Chancellor Olaf Scholz (SPD), who ordered in early 2021. Lindner reported this to the Federal Fiscal Court in a letter dated January 11, according to the Ministry of Finance.
The Minister of Finance and his party are in favor of the complete abolition of the solidarity surcharge a. A ministry spokesman told our editorial team how Lindner feels about the solos. The abolition is “not only economically correct, but also politically necessary”. However, the Liberals were not able to assert their demands in the coalition negotiations with the SPD and the Greens.
Criticism of Lindner’s decision comes from the SPD. The withdrawal was at least “unusual,” said Michael Schrodi, spokesman for financial policy for the Social Democratic parliamentary group, to our editors. “I wish there was a stronger separation between party chair and finance minister,” Schrodi continued. He expects “that applicable federal law will also be represented by the responsible federal ministry of finance before the supreme finance court.”
The financial policy spokeswoman for the Greens in the Bundestag, Katharina Beck, was also irritated by Linder’s decision: “We were surprised that Christian Lindner deviated from the previous course and did not send a representative of the Ministry of Finance to the hearing,” she told this editorial team.
Also interesting:Anti-corruption organization increases the pressure on Lindner
Rededication of the solo only with reservations?
As a so-called “supplementary tax” on income and corporation tax, the soli must be objectively justified. More than 30 years after reunification, however, this justification could be obsolete, argue the Bavarian couple and the Taxpayers Association. “With the expiry of the Solidarity Pact II, the soli has also lost its last legitimacy,” said the President of the Taxpayers’ Association, Reiner Holznagel, to our editorial team. He called the fact that the Ministry of Finance was withdrawing from the process “a strong political signal”.
the Federal Fiscal Court writes in its information on the procedure: “Should the constitutional justification for the levying of the supplementary tax no longer apply, the further question arises as to whether other reasons justify the levying from 2021.” the paper the consequences of the corona pandemic, the Ukraine war and the fight against the . However, such a “redesignation” could be subject to “parliamentary approval”, i.e. it could require a prior vote by the Bundestag.
According to SPD finance expert Schrodi, several experts at hearings in the past have stated that the Soli will continue to be constitutionally legitimized even after Solidarity Pact II has expired. If you want to keep the “capable of acting” state, you can’t cope with lower tax revenues – especially in view of the crises and upcoming investments. Greens representative Beck also sees no room for less federal revenue. “Regardless of the solos, the greater participation of stronger shoulders in the costs of the crisis is an important objective, which not least the economic wise men have given us on the way,” she said.
Read here:Retirement provision: This is how you can use the loss of the solo
Full soli rate is due from 9700 euros per month
The Federal Fiscal Court puts the total revenue from the solos at around eleven billion euros. Singles will pay him from a monthly taxable in 2023 gross income from around 6600 euros in part and from around 9700 euros in full of 5.5 percent. For couples, these limits are significantly higher. The couple who are bringing the lawsuit had applied to the responsible tax office for the soli to be reduced to zero euros and then sued the Nuremberg Finance Court. This reduced the advance payments, but otherwise dismissed the lawsuit.
The revision is now with the Federal Fiscal Court. If he decides that the solos are unconstitutional in their current form, he must appeal to the Federal Constitutional Court. If Germany’s highest finance court takes the opposite view, the plaintiffs can file a constitutional complaint with the Federal Constitutional Court. The decision is expected later this month.
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