Title: Easing the Strain on High-Income Earners: EU, AfD, and FDP's Plans
In a recent analysis, it's revealed that the election programs of various German political parties impose different financial impacts on low-income and high-income earners. According to ZEW researchers, the SPD, Greens, Left, and BSW primarily advocate for tax relief and social benefits that directly benefit lower and middle-income households.
In contrast, the programs of the Union, FDP, and AfD primarily prioritize tax relief for higher income brackets. For example, a dual-income family with two children, earning 40,000 euros a year, would stand to gain significantly more with the SPD, Greens, Left, or BSW than with the FDP or AfD, as per ZEW's calculations. The reverse is true for households earning over 60,000 euros per year.
Senior researcher Holger Stichnoth explains this disparity by stating, "The SPD, Greens, Left, and BSW aim to alleviate the financial burden on lower and middle-income families. They plan to achieve this by imposing higher taxes on top earners." In contrast, the Union, FDP, and AfD intend to increase relief proportional to income levels.
It's essential to note that the effects of these election programs may vary considerably in real-world implementation. For example, while ZEW predicts that the AfD and FDP's tax reforms could negatively impact families bearing low incomes, the researchers acknowledge that these potential disadvantages may not materialize entirely in the real world.
In summary, different German political parties have distinct approaches to addressing economic and social issues, focusing on either broad tax reductions or targeted benefits for specific income groups.
The study highlights that the SPD, Greens, Left, and BSW favor policies aimed at reducing the financial burden on lower and middle-income families, achievable through higher taxes on top earners. However, the Union, FDP, and AfD aim to increase relief proportional to income levels, benefiting higher income brackets more significantly.