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Taxes – IW believes increasing the child tax allowance is right

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Taxes – IW believes increasing the child tax allowance is right

Woman with child (archive), via dts news agency

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Cologne (dts news agency) – The German Economic Institute (IW) considers the finance minister’s plan to increase the child allowance alone to be correct. “The increase in the child allowance that is now under discussion would ensure that child benefit and the child allowance have increased almost equally by a good 22 percent since 2020,” said IW researcher Tobias Hentze to the “Rheinische Post”.

“Without regular increases, both child benefit and child benefit amounts will be devalued by inflation.” It is therefore right for politicians to regularly adjust both variables.

“This would also ensure consistent development compared to 2015 (plus 33 percent) and 2010 (plus 36 percent),” continued Hentze.

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