Majority of Germans to stop paying ‘solidarity tax’ from 2021: draft law

FRANKFURT (Reuters) - The majority of German taxpayers will no longer have to pay a "solidarity tax" introduced after the reunification of the country almost quarter of a century ago to support poorer eastern states, according to a draft law seen by Reuters. The government, comprising Chancellor Angela Merkel's conservatives and Finance Minister Olaf Scholz's centre-left Social Democrats, in their 2018 coalition agreement laid down plans to help citizens on small and medium incomes. The draft law says that around 90% of taxpayers should no longer pay the tax, which adds 5.5% to income taxes, from 2021, calling it the most comprehensive tax reduction in over 10 years.

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