In order to do this, during the tax debate in July, the LSAP suggested the implementation of a single tax rate, which would result in the rates of those earning lower incomes increasing at a slower rate compared to those with higher earnings. Along with increased rates, the party also suggested a new top tax rate.
LSAP MP Dan Kersch asked Minister of Finance Yuriko Backes how much it would cost to put his ideas into practise after she stated that by mid-2022, the state had received €445 million from taxes on salaries.
In her reply, the Minister stated that the respective measures would cost the state €1 billion every year.
The amended tax tables show that under the MP’s plans, those with yearly salaries up to €30,000 would pay €1,507 less in taxes.
Those earning over €60,000 a year would pay €2,310 less in taxes, while those earning over €130,000 a year would pay €385 less. Beyond this threshold, taxes go up. A person earning above €1 million annually would pay an additional €53,000 in taxes.
