Audretsch’s proposal suggests raising the top income tax rate from 42% to 45% for incomes exceeding €120,000, with a further increase to 48% for incomes above €250,000. He also recommends a €500 increase in the tax-free basic allowance, currently set at approximately €12,300 for singles, and an increase in the employee flat rate for professional expenses from €1,230 to €1,500. These changes are projected to relieve average families with two children by approximately €120 to €150 annually. Concurrently, the ruling coalition of CDU/CSU and SPD is considering its own tax reforms focused on alleviating burdens for small and medium incomes, with discussions ongoing in the coalition committee.