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Soli before the end - why that's no reason for taxpayers to celebrate


The solidarity surcharge is still bringing billions into the coffers of the federal government. But the days for the solos seem numbered.

The solidarity surcharge is still bringing billions into the coffers of the federal government.

But the days for the solos seem numbered.

If Christian Lindner (FDP) were the head of finance in a Dax group and not finance minister, he would have to make billions in provisions by Tuesday at the latest in view of the recognizable risks.

Because the solidarity surcharge, which is so lucrative for the federal government, is on the brink.

This is shown by a look at the ongoing solidarity proceedings before the Federal Fiscal Court (BFH) in Munich.

There, a married couple, with the support of the Taxpayers' Association, is suing against the supplementary tax.

The couple and their legal representative, the Bochum tax lawyer Prof. Roman Seer, consider the regulation that has been in force since the beginning of 2020 to be unconstitutional because the solos were actually levied to finance the construction of the East.

But at the latest since the expiry of the Solidarity Pact II at the end of 2019, the business basis for the extra tax has been lost.

In addition, the new regulation that has been in force since 2020 violates the principle of equality, since only a fraction of taxpayers have to pay the tax, argues Seer.

Although the competent IX.

Senate of the highest German finance court on Tuesday saw no trend in the central question of the constitutionality of the Soli.

But the mere fact that the five judges did not have a single question for the parties during the barely hour-long hearing should be an indication that the soli - as the plaintiffs intended - will end up before the Federal Constitutional Court.

Solidarity surcharge: Growing question marks behind the special levy

You don't have to be a lawyer to suspect that the Karlsruhe judges could then pull the plug on the solos - with possibly far-reaching consequences.

After all, the German tax authorities have collected around 40 billion euros from the levy on income and corporation tax since 2020 alone.

The finance minister would then have to transfer the billions back to the remaining solo payers – plus interest.

Overall, that would correspond to a good eight percent of the current federal budget.

Compared to this budget risk, the seven billion euros that the then Finance Minister Wolfgang Schäuble had to pay back to the energy companies because of the fuel element tax were peanuts.

But even a final solo end would be no reason for the German taxpayer to breathe a sigh of relief.

Because the willingness to save the missing billions from the repayment and the lost solo income elsewhere should be limited in Berlin.

Instead, the Treasury could go elsewhere.

It would not be cheaper for the taxpayer.

Source: merkur

All news articles on 2023-01-27

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