Contents page 1 — “Our state has really other problems” on page 2 — a tax expert Bach is required against the abolition, On a page
read The economy have recently the abolition of the solidarity surcharge. The Union also debated for several days, passionate about the future of the levy. The Grand coalition has, so far, the solos from 2021 for 90 percent of the taxpayers abolished. But is that enough? Michael Hüther, Director of the employer middle Institut der deutschen Wirtschaft (IW), arguing for a rapid abolition of the Solis. Stefan Bach, a tax expert at the German Institute for economic research (DIW).
Michael Hüther, the solos quickly and completely abolish:
tax cuts are en vogue in Germany. In times of deficit, government budgets, had a superficial fiscal logic. In times of robust budget, such as the one we are experiencing currently, the surpluses of the increasingly bizarre, especially with a view to the limited justified the solidarity surcharge.
The solidarity surcharge has been levied since 1995 as a Supplement to the respective tax liability, the income tax and the corporate income tax. In the same year the solidarity Pact I was adopted, and it should bring up 2004, the new countries of the West similar economic status. For the duration of the Solis, the expectation of ten years was therefore well-founded. As it became obvious that the new Federal States, also need to be after 2004, a special financial support, it was undisputed that the additional levy will continue to run until the year 2019.
some label dizziness
The justification for the solos lost from the beginning, a certain misnomer. Because the allegedly significant “cost of German unity” not led to an earmarking of the revenues from the solidarity surcharge. Also the solos are governed by the principle of total coverage of all expenses by all of the tax revenues – the solos-revenue end up in the General Federal budget.
Nevertheless, policy must be on the grounds and the promise of the fundamental limitation measure. According to the former Federal Minister of Finance Wolfgang Schäuble had argued that this additional levy with the termination of the solidarity Pact II in 2019 expire, and gradually, but completely. Happened, however, nothing.
All Attempts to seek the jurisdiction of revenue courts or the constitutional court and abolition of the Solis have failed so far. The principle of universality applies, as well as the fact that, according to the constitutional provisions, a supplementary tax must not be limited. Legal solutions cannot, however, help when it comes to the credibility of the policy.
the note that this additional levy was introduced for fiscal reasons. The distribution of political Considerations played no role. The strongest resistance to degradation therefore results from its fiscal importance: The solidarity surcharge of at least six percent of the tax revenue of the Federal government. Resistance also comes from the countries: Because, when the ratio between revenues and expenditures in the Federation and the länder developed in very different ways, are harassed by the tax shares, and a new – here to the countries detriment.
A perfidious, thanks to a second wealth tax
argue Some advocates of the Solis, the abolition would be the distribution of politically counter-productive. This is of course not surprising: The solidarity surcharge has finally increased the degree of Progressivity of the income tax tariff. In addition, except for taxable income of up to 13.910 Euro. Therefore, the income stronger wearing just load the special tax. As more and more devious, thanks for that, you should continue to pay a group of special-Soli as a second wealth tax. This is also true for the companies that are hidden in the public discussion always, but burdened by the solidarity surcharge also in addition.
General distribution of political need for action: The risk of poverty to the lowest level in a long time, there are always more Jobs, the income distribution apart since 2005. The policy must be found, however, necessarily solutions for the long-term unemployed and disadvantaged young people: for example, a higher intensity of Care, temporary wage subsidies, the strengthening of early childhood language education, higher all-day school quality and improved promotion.
the priorities on the expenditure side of the state budget accordingly. The abolition of the Solis the. The solidarity surcharge is to be abolished belongs to a targeted, credible policy, which understands solidarity as a one-way street. Anything else would be arbitrary.