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Elimination of soli: The Bavarian couple is suing the federal government

The Federal Cabinet has decided to largely cancel the solidarity tax. But shortly thereafter, an action follows. She comes from a married couple from Bavaria.

14:36: A devoted opponent of the Soli decision is also Mario Ohoven, president of the Federal Association of Medium-sized Enterprises. In a guest post for Münchner Merkur* He urges the members of the Bundestag "not to shake hands with this constitutional offense".

Cabinet decides sunset – couple from Bavaria complain

Update August 22, 2019, 12:57 PM: Shortly after the decision to abolish Soli, there is already an action – she comes from Bavaria. Immediately following the partial abolition of the 2021 solidarity surcharge decided by the federal government, a couple filed a lawsuit against the special tax.

The reason for this was the federal government's intention to continue to levy the surcharge on citizens and businesses in 2020, the Bund der Taxpayer (BdSt) said on Thursday in Berlin. The association supports the couple in the model suit. Earlier it already had Handelsblatt reported on the intention to sue. The Finanzgericht Nürnberg was initially unable to confirm receipt on Thursday.

According to the petition, the Taxpayers' Association argues that "politicians respect their decades-old promise to completely abolish the bid for reconstruction aid for East Germany," the statement says. "People must be able to rely on political commitments," says associate president Reiner Holznagel. Politics has always linked Solon to financial support to the new countries. If these ended at the end of the year, the solos have no more legitimacy.

The law for Federal Finance Minister Olaf Scholz (SPD) provides that solos will be eliminated from 2021 for 90 percent of taxpayers, the rest will pay him in part or in full (see below). The lawsuit is not aimed at this law, but at the fact that Soli 2020 should be included at all. There are legal doubts as the Solidarity Pact II expires at the end of 2019.

Cabinet decides sunset – South criticizes: Who especially favors the abolition

Update 1:18 pm: The partial abolition of the solos will in the future relieve 90 percent of German taxpayers. But the decision by the federal government, which on Wednesday adopted the bill by Federal Finance Minister Olaf Scholz (SPD), some does not go far enough.

CSU manager Markus Söder demanded in a second step to completely abolish the solidarity fee. "This is a matter of justice and credibility," the Bavarian prime minister said on Wednesday.

In 1991, solos were introduced to ease the cost of rebuilding the East after reunification. Revenue has since moved into the federal budget. Their use is not earmarked – consequently they were not used automatically to build up East Germany. However, even at the time of introduction of the tax, it was pointed out that it should only be applied temporarily. The reuse of funds has been discussed for a long time.

Initially, a tax of 7.5 percent of the income tax was applied. In 1995, the contribution was reduced to 5.5 percent.

The comment "The new Soli scam – East German taxation becomes a wealth tax" by Merkur editor-in-chief Georg Anastasiadis can be found here.

Soli: The cabinet decides the far-reaching abolition of solidarity supplement – which now serves in particular

Update 12:05: The suns are largely abolished in 2021. That's what the federal government decided on Wednesday. The Ministerial Round has been agreed on the draft by Federal Finance Minister Olaf Scholz (SPD). From 2021, the contribution from the solidarity supplement for 90 percent of Germans should be eliminated. But who pays the gaps caused by the loss of revenue in the federal budget?

Obviously, these revenues are not compensated. The solidarity supplement was already defined when it was introduced as a temporary tax. "The costs of reunification are largely supported," explained Olaf Scholz. "The few remaining costs after the end of the solidarity pact at the end of the year will in future be imposed on those who have more than others."

With the new regulation, taxpayers will be exempt from 2021 by more than ten billion euros per year, by 2024 this will increase to around 12 billion euros. To date, people who pay more than EUR 972 in income tax or as couples pay more than EUR 1944. From 2021 only payments should be requested, which must hand over more than EUR 16,956. The spouses are then asked from EUR 33 912 for income tax to Soli. For families with children, the exception limits are higher.

Session Federal Cabinet: Soli should largely be abolished.

© dpa / Bernd by Jutrczenka

Soli: The Cabinet largely decides to abolish the solidarity fee – who now favors in particular

Update 11:27: The solidarity supplement should be phased out from 2021 to 90 percent. But who bears the cost of the loss of income? For the fiscal year 2018, the Federal Republic could get sunshine of € 18.9 billion. For the current year, the Ministry of Finance expects revenue of approximately EUR 19.4 billion and 2020 of approximately EUR 20 billion. From 2021, 90 percent of taxpayers will no longer be asked to pay.

According to Olaf Scholz's bill, 91 percent of employees are exempt from work duties and 88 percent of traders. Currently, the solidarity supplement is 5.5 per cent of corporate tax or income tax. Singles who pay less than EUR 16 956 income tax will be exempt. Anyone who is considered a married couple may only pay income tax of up to EUR 33,912 to be exempt from tax in the future.

Video: Soli gets away – There is more money for workers


Solidarity supplement: Who benefits from the extensive elimination of solos?

However, it is crucial that debtors must expect a massive tax – as soon as their income tax is just one euro above the exemptions. But here the bill by Olaf Scholz provides a kind of "restriction zone". Only 3.5 percent of the remaining payer to pay the fee in full. The tax rate should increase gradually. The top 3.5 percent pay a full 5.5 percent of the corporate tax or income tax.

Soli: The cabinet decides to largely abolish the solidarity allowance

First notification from August 21, 2019, 11.13: Berlin – The Federal Cabinet has approved plans for Finance Minister Olaf Scholz's (SPD) plans to largely cancel the solidarity tax. "The few remaining costs at the end of the year after the end of the Solidarity Pact will in future be imposed on those who have more than others," Scholz said in a statement on Wednesday.

Scholz wants to suspend solos for 90 percent of the payer, another 6.5 percent should pay him from 2021 to only partially – the higher the income, the more. The supplement is based on the income tax, which has saved a lot of money and accumulated interest, so have to pay accordingly more. Even companies pay him over the corporate tax.

Solidarity supplement: Who benefits from the extensive elimination of solos?

In total, Solon brought the state last year € 18.9 billion. For the current year, the Ministry of Finance expects revenue of approximately EUR 19.4 billion and 2020 of approximately EUR 20 billion.

Solos had once been introduced, partly because of the Iraq war and later because of the construction of the new federal states. According to Scholz, the decision on his complete abolition will only be made during the next legislative period, which he said in the ARD magazine "Morgenmagazin".

Soli is largely abolished: who is affected?

Scholz's bill presupposes that 90 percent of Germans will be exempt from soli payments. The Federal Court had previously criticized a partial abolition of soli. Who must pay then have * Merkur.de Detailed aufredrösel.

nai / dpa / fn

* Merkur.de is part of the nationwide Ippen digital editorial network.

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