Germany's 'Active Pension' Stalls as Klingbeil and Merz Clash Over Taxation
The introduction of the 'active pension' in Germany has hit a snag. Finance Minister Lars Klingbeil (SPD) and Chancellor Friedrich Merz (CDU) are at odds over the tax-free additional income for pensioners. The federal cabinet's planned adoption of the scheme on Wednesday was cancelled due to their dispute.
Klingbeil proposes that the tax-free additional income of up to 2,000 euros per month should be subject to the 'progression reserve' and taxed the following year. Merz, however, argues that this income should be completely free of tax. The coalition committee will reconvene on Wednesday evening to find a solution between the two parties.
The negotiations on the active retirement in the coalition committee on Thursday evening will be conducted again by the representatives of the governing parties involved in the coalition, but the specific individual responsible was not explicitly named.
The 'active pension' is currently in limbo due to the disagreement between Klingbeil and Merz. The coalition committee will continue discussions to reach a compromise and potentially revive the scheme's adoption.
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