CDU is under fire from an AfD politician, who alleges flawed campaign strategies in the current election.
In the lead-up to Germany's upcoming elections, several political parties have unveiled their proposals aimed at boosting disposable income for the country's citizens. A study by the Leibniz Centre for European Economic Research provides insights into the potential effects of these proposals, focusing on the CDU/CSU, AfD, and FDP.
According to the study, both the CDU/CSU and AfD's proposals would have a positive impact on disposable income for all people in Germany, with a particularly significant effect on higher incomes. The CDU/CSU's plans, for instance, could result in an additional 414 euros of disposable income at the end of the year for a worker with a gross income between 40,001 and 55,000 euros. The AfD's proposals, on the other hand, could provide a worker in the same income bracket with an additional 1,064 euros at the end of the year.
The CDU/CSU's proposals aim to reduce the electricity tax and network charges, which would correspond to a European minimum of 0.1 cents per kilowatt hour. Conversely, the AfD's draft election program proposes reducing the electricity tax to a minimum, as per EU law. The current German law for electricity tax is based on EU directives and has been 2.05 cents per kilowatt hour since 2003.
The FDP, meanwhile, offers the highest increase in net income from gross income. Their plans include a simplified tax system and a proposed 1,000 Euro raise in the basic tax allowance, which could result in up to a 10% increase for high earners. The CDU/CSU also proposes significant relief for higher earners by raising the tax-free allowance and the threshold for the top income tax rate, albeit less than the FDP.
It is important to note that the study by the Leibniz Centre for European Economic Research is based on the party programs, requests, and position papers. However, not all proposals can be "broken down to individual households" or are "too vaguely formulated" to be included in the analysis. Measures that affect purchasing power, such as reforms of CO2 pricing or value-added tax, are not included in the study.
As the election approaches, these economic proposals will undoubtedly play a significant role in shaping the future of Germany's economy. Voters will have to weigh the potential benefits against the potential drawbacks, as well as consider other factors such as party platforms and leadership. The study provides a valuable starting point for this important discussion, but it is up to the voters to make the final decision.
