“Federal budget before summer break”
Lindner announces major tax reform package for 2023
06/19/2023, 5:12 p.m
After weeks of arguing about the budget, the finance minister announced the final budget proposal for 2024 before the summer break. At the same time, the traffic light is working on tax reforms. Lindner promises that they should improve the situation in the German economy.
Federal Finance Minister Christian Lindner has announced a major tax reform intended to improve the competitive environment for the economy. At the Industry Day in Berlin, Lindner called for future budget changes to focus on forward-looking spending. “Within the federal government, a large tax reform package is now being prepared for 2023,” said Lindner.
Lindner also promised an early end to the dispute over the 2024 budget. “It will be possible to present a federal budget at the beginning of July,” said the FDP chairman at the BDI conference. This is not a sure-fire success, but the government will get by without tax increases and will comply with the debt brake. This is also necessary because of the high inflation. The record investments from the 2023 budget would continue. But the main thing here is to use the funds in the end. As a rule, the state does not manage to ensure that all available funds are called up and thus reach the federal states or municipalities.
Cancellation of industrial electricity tariff
However, this is only the quantitative consolidation. The budget is shaped by social spending, defense and, more recently, interest payments. “Therefore, after the quantitative consolidation, the qualitative consolidation, so to speak, the budgetary change in the future, must follow.” The rudder must be shifted in the direction of investment and research. “If we don’t follow this path, then in an aging society we will be strangled by social security payments and interest rates,” said Lindner.
With the planned tax reform package, many things would be initiated to reduce compliance costs for the economy, but deficits in corporate tax regulations would also be eliminated. “Tax support for research will be expanded, and I’m also working on an investment premium that will promote climate-neutral or technology investments that contribute to climate neutrality,” explained Lindner. “We need a fiscal growth stimulus.” On the other hand, the Finance Minister again advised against an industrial electricity price. Instead, Lindner spoke out in favor of reducing the burden of the electricity tax for everyone. “I would be willing to do that,” he said.