A measure to exempt victims of the Nazis from paying an income tax on indemnification payments was passed today by the Bundestag, lower house of the German legislature. The motion was introduced by the Social Democrats, opposition to the government.
In the past, many types of compensation payments were subject to a “retroactive” income tax, computed at a flat 10 percent. In the midst of a discussion of a new tax bill which provided for heavy tax cuts for various groups, the Social Democrats called for an end to this tax on Nazi victims, noting that the government was taking back with one hand what it had just given with the other.
The measure must still be approved in the Federal Council, the upper house. It is expected that it will achieve passage there because the Council once before called for just such an act. Since the total loss to the treasury from this exemption will amount to less than one percent of the total cuts voted by the Bundestag, it is hoped that the Finance Ministry will not attempt to block it.
Help ensure Jewish news remains accessible to all. Your donation to the Jewish Telegraphic Agency powers the trusted journalism that has connected Jewish communities worldwide for more than 100 years. With your help, JTA can continue to deliver vital news and insights. Donate today.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
