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“Don’t be afraid”: Lindner rejects the tax increase

“Don’t be afraid”
Lindner rejects the tax increase

Only recently have rumors been circulating that citizens are to be asked to pay more to cushion the energy crisis. Federal Minister of Finance Lindner is now ruling this out. “With this coalition and this federal finance minister, there will be no tax increases,” he announced solemnly.

Federal Finance Minister Christian Lindner has denied rumors of tax increases and wants to reduce the general government deficit again from 2024. The FDP leader said at a tax forum of the Central Association of German Crafts in Berlin: “We are in the pre-Christmas period: do not be afraid. With this coalition and this federal finance minister there will be no tax increases.”

Lindner referred to political statements and the demand of the “economic wise men” that top earners should be asked to pay more in order to distribute the burden of the energy crisis more fairly. The minister also campaigned for a major corporate tax reform, even if there is currently no political majority for it. In an international comparison, Germany is a maximum tax country.

Lindner went on to say that after the energy crisis, Germany will have a debt ratio of around 70 percent, measured against economic output. In a European comparison, this is still an expression of sustainable public finances. However, Germany has moved further away from the Maastricht criteria. The goal must be to stay in this direction again by the end of the decade. From 2024, the overall economic deficit must be reduced.

Increasing contribution rates no longer manageable

A debt ceiling of 60 percent of gross domestic product has been agreed in the European Maastricht agreements. Germany has exceeded this mark since the beginning of the corona pandemic. Due to extensive government aid measures, many billions of new debts were taken on. Crafts President Hans Peter Wollseifer called on the federal government to introduce a moratorium on stress due to the difficult situation in many companies.

The trade also needs a tax law that is friendly to companies and medium-sized companies. In addition to taxes, politicians must also take social spending into account. Increasing contribution rates are simply no longer manageable, especially for labour-intensive trades.

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