The German state expects significantly higher tax revenues than previously assumed: 63.3 billion euro more, according to working Group, it could be tax estimation for federal government, Länder and municipalities by year 2022. In view of this, federal finance Minister Olaf Scholz (SPD) announced a relief for people with medium and small incomes. The Confederation alone had up to 2022 additional margins of a total of 10.8 billion euros, Scholz said at presentation of tax estimate. This will be used responsibly to eliminate substantiate effects of cold progression of 2019. How high discharge for citizens Genauausfällt should be fixed in autumn.
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In total, revenues of 772.1 billion euros are expected this year, which will n rise to 905.9 billion euros until 2022. For current year alone, this is about 7.8 billion euros more than last thought. The budgetary spokesman of Union’s Bundestag group, Eckhardt Rehberg, is leading this development back to good economic and employment situation. This was ” result of good financial and economic policy of Union-led federal government of recent years”.
The grand coalition is already planning additional investments and spending of 46 billion euros by end of 2021. “To a certain extent” re will also be spaces that could be used in accordance with clear specifications of coalition agreement, Scholz said. This involves expenditure on development cooperation and defence. How to divide funds exactly will show debate of next few weeks. “We have a small opportunity to do this,” said Scholz. First, however, it is a relief for citizens with medium and small incomes and creation of a digital fund. This is to be used for digitisation of schools and broadband expansion in Germany.
The Ministry of Defence and Ministry of Development had urged first to benefit from additional revenue. Thus, Defense Minister Ursula von Leyen wants to rectify equipment shortages in Bundeswehr and to meet demands of United States to increase defence spending. Development Minister Gerd Müller (CSU) aims to combat causes of escape in countries of origin. Both ministers had shown mselves dissatisfied with current draft budget of Scholz for 2018.
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CDU general Secretary Annegret Kramp-Cart builder said before announcing data in a world interview, if taxes continued to develop so positively, one should also consider issue of relief, eir through social security contributions or taxes.
The federal Government of taxpayers pointed out that many of issues were already planned by coalition. “Much has long been planned by grand coalition, for example for Baukindergeld and mors ‘ pensions,” said president of federal Government of taxpayer, pure nail, Passauer Neue Presse. The German Chamber of Commerce and Industry (DIHK) called for furr relief for entrepreneurs and citizens. “There is now no excuse to deny citizens and businesses tax relief,” said DIHK president Eric Schweitzer of Bild newspaper.
The Working Group tax estimation met in Mainz since Monday. The Working Group includes experts from federal government, countries and municipalities as well as tax experts from major economic research institutes, Bundesbank and Expert Council for assessment of macroeconomic development. Their tax estimation is basis of budget planning of federal government, Länder and municipalities.
