The relief on income tax that CDU general secretary Carsten Linnemann proposed would cause a state revenue shortfall in the billions. “The proposal would mean a relief of nine billion euros per year” said DIW tax expert Stefan Bach to the “Welt” (Tuesday edition).
According to DIW calculations, the potential tax saving from the new top‑rate threshold of 80,000 euros of taxable income-a figure Linnemann suggested over the weekend-would be up to €1,000 for single‑filers and up to €2,000 for couples.
These benefits would apply only to households in the top ten percent of income earners. On average, single individuals would be relieved by €92 per year, while families with two children and an average income would see a relief of €160. Bach notes that to keep the reform revenue neutral, the top tax rate would need to be raised to 47 percent, a rate reached when taxable income reaches €97,200.