Tax policy: New Groko, Old standstill

Neither right nor left are satisfied: The two economists Peter Bofinger and Michael Hüther have much to criticize in the tax compromise of the Union and the SPD.

Tax policy: New Groko, Old standstill
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  • Page 1 — New Groko, old standstill
  • Page 2 — focus should have been on lower incomes
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    Michael Hür, director of Institute of German Economy Cologne:

    It was almost forgotten that re was agreement between annexed SPD in election campaign. In fiscal policy, DerMittelstandsbauch should become slimmer, top tax rate should not always meet more skilled workers, and solidarity surcharge should be reduced from year 2020. So it stood in beidenWahlprogrammen. Thus, n government parties admitted openly ihreVersäumnisse in tax policy – long enough time for action had you.

    Unexpectedly and not entirely voluntarily, CDU, CSU and SPDjetzt have been given chance to lay down ir inertia. But Siedaraus have done little: instead of sticking to ir own electoral programs, DieSondierer have agreed on "a paper of giving and taking", as KanzlerinAngela Merkel called it. This means that everyone can write some favors on ir own flag. The overall picture seems secondary. The child benefit is rising as demanded by Union, statutory health insurance wirdkünftig again financed equally. That's what SPD wants.

    Orwise, presumably new, old Grand coalition makes Daweiter, where it stopped last year: at standstill. From a slimmer midlevel belly or later insertion of spiked tax rate, unification paper lacks any trace. As a result, Esdabei remains that even with low-income earners, an extra-deserved euro is going to a large extent to state, because tax rates are rising rapidly and strongly undmehr than four million people in Germany are slipping into top rate.

    Even after 2019, Soli does not disappear completely, but parties have agreed on an open border. Those who darüberliegt with ir income must pay off an additional euro rund70 cent to Treasury – an economic madness. and union and SPDhaben still had a trick: Unlike in election campaign, promise was not 2020, but only a year later to a partial dismantling.

    From perspective of politicians, this makes bill for Diekommenden four years enormously easier. You can spend about ten billion Euromehr. All-day care, social housing, more money for DieKommunen and a higher defense budget can be financed easier.

    Michael Hür

    is director of employer-oriented Institute of German economy cologne.

    The pension level is expected to Festgezurrtwerden to 2025 at 48 percent. For example, contributors and taxpayers in year 2025 Voraussichtlichmehr more than eleven billion euros in additional shoulders – cost of mors ' pension partii and life-benefit pension are not yet included.

    From return to parity financing dergesetzlichen health insurance, workers are likely to benefit nurkurzfristig. As a result, labour costs are rising from company's perspective. The kannJobs costs. And in case of unemployment insurance, planned Beitragssenkunggemessen on billions surplus is more puny. Moreover, DiePolitik not only clings to revenue, but also seeks ways to collect even more. From abolition of withholding tax, it promises to Ebensoein plus for Treasury as for a financial transaction tax.

    A "continue so" should not actually exist, union and SPD have always stressed before talks. Now everything is probably wiegehabt. Their own electoral programs seem to be forgotten. Offensichtlichsind, probers agree that state knows better how to spend money than citizens.

    Date Of Update: 14 January 2018, 12:02
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