A simulation conducted by researchers at the Rheinisch-Westfälische Technische Hochschule (RWTH) Aachen, reported on by Spiegel, indicates that the planned reduction in energy taxes on gasoline and diesel primarily benefits higher-income households. According to the study, the top ten percent of earners are projected to save a total of €21.64 over a two-month period, which is three times the savings accrued by the bottom ten percent, who estimate savings at only €6.48. This disparity exists because the researchers factored in the assumption that higher income levels often correlate with increased fuel consumption, allowing higher earners to profit more substantially. For context, a single-person household earning nearly €4,500 net per month would fall into the top bracket, while one earning less than €1,200 would be in the lowest bracket. An RWTH economist, Aaron Praktiknjo, stated that this is “not a targeted measure”. He added that although he himself was paying more for fuel, he admitted that he did not urgently need the anticipated discount. Praktiknjo and his team based their calculations on data from the Federal Statistical Office’s income and expenditure survey, the socioeconomic panel, the German mobility panel, and current fuel prices. The proposed reduction equates to approximately 17 cents gross per liter (€14.04 plus VAT).
Wealthy Households Benefit Most From Planned Fuel Tax Cuts
