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Germany Today

German news in English

Thursday, October 17, 2024

Germany's Tax Break Plan for Foreign Workers Sparks Debate

Published: 2024-07-09

The German government has proposed a controversial tax incentive plan to attract foreign skilled workers.

Under this initiative, newly immigrated professionals could enjoy tax-free allowances of 30%, 20%, and 10% on their gross salary in their first three years in Germany.

Finance Minister Christian Lindner argues this measure is necessary to make Germany more competitive in the international job market.

However, the plan has faced criticism from opposition parties and trade unions, who argue it discriminates against domestic workers.

Critics, including former minister Julia Klöckner, describe it as creating 'first and second-class workers.

' Despite the backlash, Economy Minister Robert Habeck defends the proposal, citing similar practices in other European countries and the need to address Germany's significant skills shortage.