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“The limit has been crossed”: Is there a risk of companies dying in the Rosenheim region?

2024-03-26T16:46:40.853Z

Highlights: “The limit has been crossed’: Is there a risk of companies dying in the Rosenheim region?. As of: March 26, 2024, 3:14 p.m CommentsPressSplit After the increased district levy, Andreas Bensegger, chairman of the IHK regional committee in Rosenheim, fears that the trade tax will be increased. In an interview with the OVB, he explains whether there will be economic chaos in the region, whether vacancies will become even greater and why the tax increase could have fatal consequences.



As of: March 26, 2024, 3:14 p.m

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After the increased district levy in the Rosenheim district, Andreas Bensegger, chairman of the IHK regional committee, fears that the trade tax will be increased and that could have serious consequences for companies in the region.

© Montage: Schlecker/private

Fear is spreading in companies in the Rosenheim region.

The reason: The municipalities are considering increasing the trade tax in order to compensate for the increased district levy.

What a business representative criticizes and what serious consequences he fears for the region.

Rosenheim

– The communities in the Rosenheim district are concerned about the increased district levy.

Because the additional money that they have to hand over to the district is missing from their own municipal coffers.

In order to fill the holes, there is discussion about increasing the trade tax.

This in turn calls local companies onto the scene.

Due to the planned tax increase, some fear for their existence.

In an interview with the OVB, Andreas Bensegger, chairman of the IHK regional committee in Rosenheim and an entrepreneur himself, explains whether there will be economic chaos in the region, whether vacancies will become even greater and why the tax increase could have fatal consequences.

Is the Rosenheim region threatened with economic chaos?

Andreas Bensegger:

The economy in the region is already relatively resilient.

We learned that we have to grit our teeth a bit and keep working.

But the question is when the maximum load limit for companies will be reached.

With every additional percentage point that we have to pay in taxes, this limit is significantly exceeded.

What happens if the trade tax in the municipalities is increased now?

Bensegger:

The challenge for the economy is that Germany is already a high-tax country.

Compared to the EU, where the average tax burden on companies is around 21 percent, we in Germany have had a huge tax disadvantage of almost 30 percent for years.

Basically, you shouldn't forget that we're doing well here.

But the competitive disadvantages could mean that there are no longer any prospects for some.

That wouldn't be good, since many areas of social life such as sports, clubs and cultural things are also supported by companies and they also benefit directly and indirectly from a stable economy.

The region is losing businesses due to the tax increase?

Bensegger:

I don't want to give that forecast now.

But the question will be what the prospects are for the future.

I believe that companies, for example, could hold back investments in the region.

Because I “like” paying my taxes where I feel valued.

However, if the tax burden becomes ever higher, then companies that are able to do so will relocate more of their value creation abroad, as we are already seeing.

Other companies such as stationary companies, retailers and restaurants cannot do this.

The tax increase could be the icing on the cake so that the economic perspective is missing and it says: “I don't like it anymore, I can't do it anymore, then I'll just stop”.

And companies that actually wanted to come to the Rosenheim region are changing their minds.

Bensegger:

Yes, the trade tax rate is definitely a factor in the attractiveness of the location.

There are several factors for a settlement, such as connections, staff options and logistics.

But of course there is also the issue of what the location costs.

If locations have clear differences, it is an incentive to move somewhere else and rethink the location decision.

Not exactly beneficial in times of vacancies in the city centers.

Bensegger:

The economy is not strengthened by tax increases, but rather massively weakened.

And everything that weakens the economy will cost companies.

Vacancies, both in the city of Rosenheim and in the district municipalities, are not always that easy to fill anyway.

It doesn't help when companies have to stop because they've reached their limits.

Andreas Bensegger, chairman of the IHK regional committee in Rosenheim and an entrepreneur himself, is critical of an increase in trade tax.

© Private

Are companies or communities more worried?

Bensegger:

I don't want to trade places with the communities and I don't envy any mayor, district administrator or mayor for their task of compensating for everything.

But in business we don't have the opportunity to simply increase a few things because we are in direct competition.

The municipalities can hardly generate any additional income, that is also completely clear.

Except perhaps with a forward-looking economic and location policy in order to better assert ourselves in the competition for locations.

That's their option.

Basically, it only works with each other.

We like to get involved in various topics and are always ready for discussions.

Mayoral circles say that a higher trade tax is not a problem for companies.

Bensegger:

That makes me smile a little, even though it almost makes me cry.

Since I already know a little about business calculations, I see it differently.

Anyone who believes today that we are making huge sales returns – regardless of whether it is production, crafts, trade, services or commerce – does not entirely live on this earth.

Everything we earn is earned hard and increasingly in a competitive environment in which you have to assert yourself as a company.

The economy is already heavily tax burdened.

To say that it's all easy is a lack of sense of reality.

Incidentally, the treasurer of the state capital Munich also sees it this way, who, in view of the difficult financial situation, has currently spoken out against an increase in trade tax and in favor of savings in administrative costs.

If established companies disappear because of the increase, then there will be fewer trade tax payers.

Isn't this a financially vicious circle - especially for the communities?

Bensegger:

Yes, of course.

Trade tax is an important factor alongside income and property tax.

These are the three topics where the community can try to finance proportionally.

Of course also in times when many things are more expensive due to all the circumstances.

I completely understand that.

But it is not the challenge of the economy to finance the general public.

We are happy to make a contribution and of course profits are also taxed.

Let's not even discuss it.

And it's nice to pay taxes in the region.

Because it is beautiful here and it should stay beautiful.

You just have to solve things sensibly.

Don't just say we raise taxes across the board because that's the only way when new risks arise.

You have to look at how you can redistribute topics better.

Maybe also towards the state and the federal government.

Does this also have consequences for the people in the region?

Bensegger:

I think the biggest effect will be that companies will simply stop.

In the next few years, a third of family businesses will be faced with the question of whether they want to or can continue.

More taxes also mean less desire for entrepreneurship.

Then there are even fewer companies!

This means that the customer has fewer offers and choices and perhaps longer distances.

I don't believe that higher business taxation will have an impact on prices.

The market won't bear that.

Is it an option to increase other taxes instead of business tax?

Bensegger:

No, not in my opinion.

The tax burden is already very high for the economy, but just as much for private individuals.

And the whole tax issue is at the limit of what is possible for all participants in this economic cycle.

I think we can no longer expect anyone here to have to pay a higher tax or duty burden.

Nobody can finance that.

Neither the economy nor the private sector.

Source: merkur

All news articles on 2024-03-26

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