On Wednesday, the Council of Ministers will decide: As of January 1, 2023, the creeping tax increase will be abolished. A few points were still open until the end. About how to deal with the remaining third of the income.
Two-thirds of the revenue from the cold progression automatically flows back to taxpayers through income tax and tax credits. The remaining third consists of approximately 600 million euros. They should mainly benefit small and middle income earners.
Deduction for smaller incomes above inflation
The limit amounts of the lower two rate levels are increased by the inflation rate. This means that especially low and middle incomes are relieved above inflation.
The deductions (single earner and single parent deduction, retiree deduction) are adjusted to reflect full inflation. With the exception of the highest tax rate, the other rate levels of the income tax limits are increased by two-thirds of the inflation rate.
Source: Krone
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