The Green Party has put forward a comprehensive tax reform proposal, outlining significant changes to income tax brackets and allowances. According to Green parliamentary group vice-chair Andreas Audretsch, the reforms include raising the top marginal tax rate. While the rate for earned income up to €120,000 remains at 45 percent, the rate for income exceeding €250,000 would increase to 48 percent.
Furthermore, the group proposes raising the basic tax allowance by €500 and increasing the employee flat-rate deduction to €1,500. Audretsch explained that these changes would ease the burden on lower-income earners. He added that the overall financing remains secure by implementing higher taxation at the top end of the income spectrum. “For an average family with two children, this translates to a saving of roughly 120 to 150 euros per year” he noted. Additionally, the Greens plan to shield partnerships from excessive taxation by advancing the development of the tax options model.
During the debate, Audretsch sharply criticized policy suggestions, particularly those from the Union, arguing they are fiscally impossible to implement. He stated that the Union’s proposals require 30 billion euros and would disproportionately benefit high-income earners, calling the measure both unjust and unbelievable. “No one genuinely believes that this can happen” Audretsch asserted, characterizing the opponent’s plan as building ‘castles in the air’ because its funding mechanism was unclear. He concluded by emphasizing the Green message: “We are offering a fair and feasible counter-proposal; we relieve the broad population and ensure that companies are not unduly burdened”.
