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Global Economy

Green against higher commuter flat rate

In the traffic light coalition's debate on measures to counteract the consequences of high energy prices, the Greens are resisting a possible early increase in the commuter allowance. "The commuter allowance is already an environmentally harmful subsidy," said the budgetary spokesman for the Green parliamentary group, Sven-Christian Kindler, of the "Augsburger Allgemeine". "An increase in the commuter allowance would be socially unfair and economically and ecologically counterproductive," he said.

In the coalition committee of SPD, Greens and FDP planned for tomorrow, the heads of the traffic light coalition want to discuss possible measures to relieve private households, as SPD leader Lars Klingbeil announced yesterday. The commuter allowance is one of the adjustment screws discussed so far.

According to the Greens household expert Kindler, however, people with higher incomes in particular would benefit from the commuter allowance. A relief would therefore only be relevant in the tax return for the next year. "We need to help people on low incomes instead of handing out expensive tax breaks." The immediate surcharge for children from poor families, a fair distribution of the CO2 price between landlords and tenants for heating costs and a one-off payment for people with basic security belonged in a viable package, said the Green politician.

Other politicians and consumer centers reject the increase

Greens leader Omid Nouripour sees it similarly, who even puts a stop to the plans: "It's not feasible with us." According to Nouripour, the commuter allowance is not a contribution to climate protection and increasing it is not a way to get out of fossil fuels.

The financial policy spokesman for the SPD parliamentary group, Michael Schrodi, also expressed skepticism about an increase in the distance allowance to the "Augsburger Allgemeine". "There are other options on the table." According to Schrodi, he prefers direct payments that help people quickly.

The consumer advice centers also reject the project. This "would be the wrong way" because households with high incomes in particular would benefit from it, emphasized Marion Jungbluth, team leader for mobility and travel at the Federal Association of Consumer Organizations. Instead, she called for an income-independent mobility allowance.

The deputy SPD chairwoman and Saarland Economics Minister Anke Rehlinger had previously advocated an increase in the commuter allowance and described it as "a quickly effective instrument". Federal Minister of Finance and FDP leader Christian Lindner had also discussed an earlier increase.

Many commuters hardly benefit

For journeys to the first place of work, the tax office recognizes a distance flat rate of 30 cents per actual working day for each kilometer of one-way distance. From the 21st kilometer there will be 35 cents since 2021. At the beginning of 2024, it should be 38 cents per kilometer from the 21st kilometer.

The distance allowance is independent of the respective means of transport. If income-related expenses total more than EUR 1,000 per year, the tax burden can be reduced with every EUR above that. However, many commuters travel less than ten kilometers from home to work every day. They then hardly benefit because the amount is within the employee lump sum.

According to earlier information from the Federal Statistical Office, around 18.4 million commuters reported that they drove at least part of the way to work by car in 2017. That corresponded to a share of 88 percent. It was also said that around 7.5 million commuters had a commute of more than 20 kilometers in 2017. Nationwide, the number of long-distance commuters in Germany rose by 4.5 percent last year, according to data from the Federal Employment Agency. In 2021, around 3.5 million employees did not work in the federal state in which they lived.

Union demands 38 cents

A higher commuter allowance is controversial, especially among the Greens. The Union demands that the flat rate should be increased to 0.38 euros per kilometer and "dynamically" further developed depending on the applicable CO2 price. The IG BCE union is proposing an increase to 40 cents per kilometer for the 2022 tax year.

So far, only the heating cost subsidy has been decided by the cabinet as a means of cushioning the rise in energy prices. In addition, the SPD, Greens and FDP agree that the EEG surcharge should be abolished earlier than planned – if possible by the middle of the year. Possible further measures include an increase in the commuter allowance, an immediate child allowance and a climate premium.

Green leader Nouripour also referred yesterday to the rising minimum wage and the extension of the short-time work scheme. Anything would help to secure jobs and people could pay the higher energy prices. In addition to private households, numerous medium-sized companies are currently complaining about the high energy costs. According to a recent survey, almost a quarter (23 percent) even describe it as an existential challenge. The Federation of German Industries (BDI) is already warning of a wave of migration.

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