The German Finance Minister will present his draft budget for 2018 to the Bundestag Tuesday – and changes to the tax code could leave you with more money in your pocket.
The minister, Olaf Scholz, wants to make technical changes to the system that will lead to Germans paying lower rates. According to the Rheinische Post, a person earning €2,000 a month before taxes would pay four euros less a month. That goes for both single people and married couples. Those with a gross income of €5,000 per month would pay up to eleven euros less in the month.
Scholz, a member of the Social Democrats (SPD), also wants to raise the amount residents in German are allowed to earn without paying any income tax. At the moment, that amount is €9,000 for singles and €18,000 for married couples. In the new budget, both amounts would increase by €270. These are relatively minor changes, but ones that everyone working in Germany will notice.
In general, the new budget doesn’t stray too far from those of recent German governments. Angela Merkel’s government is sticking to the plan, and will take on no new debt in 2018. Such a debt-free budget is known in Germany as the “black zero”, or Schwarze Null.