SHARE
COPY LINK

POLITICS

Germans sceptical of tax cuts

Most German voters don’t think they will actually get a tax cut, despite promises by Chancellor Angela Merkel’s Christian Democrats, according to a new poll published in the latest issue of the weekly Wirtschaftswoche.

Germans sceptical of tax cuts
Photo: DPA

The union between Merkel’s Christian Democratic Union (CDU) and their Bavarian sister party, the Christian Social Union (CSU) announced their election-year tax cut plans on June 28. Details included dropping the rate for low-income earners from 14 to 12 percent and raising the threshold after which the top rate applies from €52,000 to €60,000.

National elections are scheduled for September 27.

But voters are not convinced by the Chancellor’s promises, 52 percent of those asked said they thought the government’s large budget deficits would make tax cuts impossible.

Contrary to Merkel’s promise, 64 percent of the respondents to the Allensbach Institute’s poll said they thought their taxes would rise next year.

Just 25 percent of Germans thought tax rates would stay where they currently are and only four percent thought taxes would fall.

Finance Minister Peer Steinbrück, who is from the rival Social Democratic Party that currently governs in an uncomfortable coalition with the CDU, criticised the CDU’s tax promises in an interview with public broadcaster Deutschlandradio Kultur Saturday.

Steinbrück said it was astounding that the same party which recently helped pass a balanced budget amendment, which will prevent states and the federal government from taking on new debt, could “simultaneously make grandiose promises to the country for tax cuts worth tens of billions.”

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

POLITICS

Germany’s Scholz rejects calls for later retirement in Labour Day message

German Chancellor Olaf Scholz (SPD) has rejected calls for later retirement in a video message for Labour Day published on Wednesday.

Germany's Scholz rejects calls for later retirement in Labour Day message

“For me, it is a question of decency not to deny those who have worked for a long time the retirement they deserve,” said Scholz.

Employees in Germany worked more hours in 2023 than ever before: “That’s why it annoys me when some people talk disparagingly about ‘Germany’s theme park’ – or when people call for raising the retirement age,” he said.

Scholz also warned of creating uncertainty due to new debates about the retirement age. “Younger people who are just starting out in their working lives also have the right to know how long they have to work,” he said.

Scholz did not explicitly say who the criticism was targeted at, but at its party conference last weekend, the coalition partner FDP called for the abolition of pensions at 63 for those with long-term insurance, angering its government partners SPD and the Greens.

Scholz saw the introduction of the minimum wage nine years ago – and its increase to twelve euros per hour by his government – as a “great success”. “The proportion of poorly paid jobs in our country has shrunk as a result,” he said.

READ ALSO: EXPLAINED: Is it worthwhile to set up a private pension plan in Germany?

However, he said there were still too many people “who work hard for too little money,” highlighting the additional support available through housing benefit, child allowance and the reduction of social security contributions for low earners.

“Good collective wage agreements also ensure that many employees finally have more money in their pockets again,” he added. 

And he said that the country wouldn’t “run out of work” in the coming years.

“On the contrary! We need more workers,” he said, explaining that that’s why his government is ensuring “that those who fled to us from Russia’s war in Ukraine get work more quickly.”

Work means “more than making money,” said Scholz. “Work also means: belonging, having colleagues, experiencing recognition and appreciation.”

SHOW COMMENTS