In the fight against high inflation, Chancellor Olaf Scholz is promoting tax-free one-off payments from employers. Criticism comes from the opposition, trade unions – and from the coalition.
Berlin – Recently, prices in Germany only knew one direction: steeply upwards. In order to mitigate inflation, Chancellor Olaf Scholz (SPD) is campaigning according to a report by picture on sunday for a “concerted action” – and tax-free one-off payments by employers to their employees. But this idea is not only a source of criticism from the opposition and trade unions. Concerns are also being raised in the government camp. “It has to be answered why people with very high incomes should receive state support in companies that make good profits,” said Andreas Audretsch, Vice President of the Greens IPPEN.MEDIA.
Scholz advance: Greens see a problem of justice
On July 4, Chancellor Scholz wants to discuss with employers and unions how price developments can be brought under control again. Scholz’s idea is for employers to transfer their employees a tax-free special payment. In return, the unions should forgo part of the wage increases in collective bargaining. Workers who are not bound by a collective agreement and pensioners should receive a separate subsidy, they say.
From the point of view of the Greens, it must be clarified what the corresponding support can look like. It is not just about employees in companies that are not bound by collective bargaining agreements. Self-employed people also need relief. Group Vice Audretsch said in an interview with IPPEN.MEDIAthat there is “an enormous problem for people with little money”. This includes people on low incomes as well as those on low pensions.
Tax-free one-time payment: CDU man Gröhe accuses Ampel of not having a concept
Criticism of the Scholz proposal also comes from the opposition – albeit with a different thrust. Union parliamentary group leader Hermann Gröhe (CDU) accuses the traffic light government of not having a concept against the current price increases. “The funds lack target accuracy,” said Gröhe IPPEN.MEDIA. Each individual measure harbors the risk of overlooking certain groups of people. As an example, Gröhe cites the energy flat rate, which pensioners and students get nothing. “People find that deeply unfair,” says Gröhe. Instead, the CDU politician proposes abolishing cold progression – and, in view of rising interest rates, putting more emphasis on budgetary discipline.
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Gröhe does not rule out one-off payments to employees per se. Whether the state will help out with taxes would first have to be discussed with the collective bargaining partners. “Bringing this out publicly and in dispute with the social partners represents a false start of the ‘concerted action’ even before the first meeting,” said Gröhe IPPEN.MEDIA.
One-off payments instead of tariff increases: skepticism among leftists and unions
The left also see the Scholz advance critically. “Employers should rather be asked by the chancellor to negotiate proper wage agreements with unions and not to use a relief bonus as a joker to further circumvent them,” said the new party leader Martin Schirdewan IPPEN.MEDIA.
In the union camp, the move also causes upset. IG Metall rejects the plans, said a spokeswoman for the news agency dpa. The police union (GdP) described the envisaged tax-free one-off payment as “not sustainable help”. The trade union economist Sebastian Dullien, director of the Institute for Macroeconomics and Business Cycle Research (IMK), points out that salaries in many sectors have not increased during the pandemic. “Even if inflation comes back down next year, consumer prices are unlikely to fall again,” Dullien said IPPEN.MEDIA. So there is a gap that needs to be filled.
One-off payment to compensate for inflation: Greens ask about justice
While economist Dullien is in favor of finding a “clever mix” of one-off payments and higher tariffs, Greens parliamentary group leader Andreas Audretsch has another suggestion: consistently push ahead with the energy transition and relieve it where the need is greatest. Specifically, Audretsch is promoting higher Hartz IV rates and more money in basic security – the Greens are planning to pay 50 euros per month permanently. To do this, however, one’s own coalition partners would first have to be convinced at the traffic lights. It is above all the Liberals who are skeptical about additional spending requests.
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