Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
German Finance Minister Lars Klingbeil has presented coalition negotiators with two proposals for an income tax reform, including tax relief of up to €20 billion ($21.6 billion) and a higher levy on top earners, Spiegel reported on Monday.
One proposal would provide moderate relief for taxpayers worth about €10 billion, while the other would offer a larger package of around €20 billion, the news outlet said.
To help finance the measures, Klingbeil is considering raising Germany's so-called "rich tax" rate, which currently stands at 45 per cent and applies to single taxpayers with taxable annual income of roughly €280,000 or more, the report said.
The plans would also raise the income threshold at which the 42 per cent top rate applies. That rate currently kicks in at taxable income of about €70,000, and Spiegel said this move was likely aimed at winning support from the conservatives in the coalition.
For the more expensive version, Klingbeil is also proposing an increase in inheritance tax alongside other measures, ahead of an expected ruling by Germany's constitutional court.
A spokesperson from the finance ministry said coalition talks were "continuing confidentially" and declined to comment on details, Spiegel said.