Overview
- The referentenentwurf from the Bundesfinanzministerium presents measures that the ministry says will equal about €10 billion in annual relief by 2028 but stages the changes over two steps rather than delivering the full amount at once.
- Media coverage shows contested phasing of the relief—some outlets report roughly €2.9 billion in 2027 and €6.99 billion in 2028 while others cite alternative splits such as €5.6 billion and €4.2 billion—leaving the timing and immediate impact of cuts unclear.
- The draft omits an explicit compensation for kalte Progression, meaning inflation-driven bracket creep would not be separately offset and could erode real purchasing-power gains for many taxpayers.
- To pay for the package the draft expands top rates (45% from €250,000 and 47% from €280,000) and lists targeted revenue moves including cutting certain exemptions and lowering the association exemption from €5,000 to a €1,000 freigrenze for taxable clubs.
- The proposal has prompted sharp criticism from CDU/CSU and interest groups over smaller-than-expected net relief and hit‑list items for clubs and small businesses, and it now faces intergovernmental coordination, stakeholder consultation and a Progressionsbericht in autumn that could alter the design.