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"Put to a draw": Scholz and Habeck see no scope for tax relief

2021-10-25T05:07:20.361Z


The FDP is reluctant to raise taxes in the negotiations. She is now also experiencing resistance to the subsidence she likes most. Major tax reforms are likely to be difficult in a traffic light coalition.


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Traffic light negotiators Scholz and Habeck: Defend the exploratory result against criticism

Photo: CLEMENS BILAN / EPA

In the negotiations on a traffic light coalition after the federal election, finances are likely to be one of the most difficult issues. Two worldviews collide here: that of the FDP, in which tax relief and laissez-faire play an important role, and that of the SPD and the Greens, which also wants to stimulate the green economy through higher taxes and more state investments. Even if a government alliance between the parties is formed, little could change in this difficult initial situation - everything points to a blockade for the next four years.

According to SPD chancellor candidate Olaf Scholz and Greens co-leader Robert Habeck, tax reform can only relieve small and medium incomes if tax revenues increase.

Both politicians said on the ARD program »Anne Will« on Sunday: Without the tax increases prevented by the FDP, there would be no room for maneuver.

One will now see in the next four years what possibilities there are still.

Scholz believes in the future of solos for higher earners

At the same time, the currently incumbent Finance Minister Scholz was convinced that the Federal Constitutional Court will not overturn the still existing soli surcharge for higher earners.

He was "as sure as you can be in court".

Habeck expressed himself more cautiously and pointed out that one had to wait for a decision from Karlsruhe.

Should the solos have to be completely abolished, experts expect a billion hole in tax revenue.

"In this respect, there is not much movement in the area of ​​financial policy, which includes taxes, you have to honestly say that," said Habeck of the traffic light talks about tax reform.

In the area of ​​tax burdens and reliefs, the exploratory process between the three parties is "virtually undecided".

Because of the FDP and also the Union, constitutional changes to the debt brake are not possible, so that the scope is limited by new borrowing.

Despite this setback for the Greens and the SPD, Habeck defends the result: The FDP was also unable to achieve a reduction in corporate taxes.

Scholz and Habeck referred to other agreed reforms and emphasized that the planned abolition of the EEG surcharge would also relieve private individuals and thus offset additional costs for higher energy prices.

Scholz spoke of an amount of 300 euros for a family of four.

He also referred to the planned increase in the minimum wage to twelve euros and the agreed increase in the limits of so-called mid-jobs, from which lower incomes would benefit in particular.

apr / Reuters

Source: spiegel

All business articles on 2021-10-25

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