Reuters

BERLIN (Reuters) - Germany's conservatives and Social Democrats (SPD) want to raise the bar for a top income tax rate for high earners to an annual income of 60,000 euros, a source with knowledge of their coalition talks said on Monday.

 

The measure, an election promise by the conservatives, is designed to provide tax relief for high earners. It signals a compromise by the SPD who had wanted to raise taxes for high earners and expand welfare payments.

 

A top tax rate of 42 percent at the moment applies for those who earn some 53,700 euros and above ($64,375.56) annually.

 

(Writing by Joseph Nasr; Editing by Paul Carrel)