The turquoise-green federal government has nearly completed negotiations on an anti-inflation package. You can expect a presentation on Tuesday or Wednesday. In any case, the government will probably spend quite a bit of money, as insiders told the “Krone”. Above all, people with a low income should be relieved. Fix according to the negotiators: the abolition of cold progression, the indexation of social benefits, a climate bonus of 250 euros for everyone and the postponement of the CO2 tax to October.
“Negotiations are starting the last straight line so that we can quickly get the aid going,” Social Affairs Minister Johannes Rauch (Greens) confirmed in a statement on Monday.
According to representatives of the coalition parties, it should be a broad and comprehensive package that includes both immediate short-term measures for all groups and those particularly affected by inflation, as well as effective long-term reforms to ease the burden. The government’s goal is to “give back” the money to the population, who swallow the price and inflation.
Rauch: Low-income people are relieved
In the talks, Rauch particularly spoke out for people on low incomes, such as minimum retirees, single parents, students and other groups who are particularly hard hit by inflation.
Child benefit, health care allowance, unemployment benefit, social assistance
According to Rauch, the regular increase in social benefits in line with the respective price increases is particularly important to him. According to statements made by various politicians in recent days, this specifically concerns child benefit, health care allowance, unemployment benefits and social assistance.
According to insiders, the solution is the abolition of cold progression. As a reminder of what cold progression means, even though you’ve gotten a pay rise, there’s not much left net because the higher paycheck falls into a higher tax bracket. The federal government is now abolishing this “secret tax increase” for almost all tax brackets.
In addition, the deductions are valorised, especially for low income earners. According to negotiating circles, these two measures would aim at a broad and structural relief, “that will apply permanently”.
In addition to the increase in benefits, a shift in the CO2 price from July to October is planned. At the same time, the climate bonus will be increased to 250 euros for everyone, regardless of where they live. These two measures alone cost a billion euros. The other points should also run into the billions, as has been confirmed by several parties. There was talk of a “large chunk” and “large sums”.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
