2023-05-12 10:26:25
Federal Finance Minister Christian Lindner (FDP)
Image: AFP
Tax revenue in Germany is developing weaker than expected. The traffic light coalition now faces the meritorious task of adapting what was hoped for to what is feasible.
SEven the location turns an ordinary tax assessment into an unusual event: Niigata. From far away Japan, Finance Minister Christian Lindner (FDP) presents the results of the working group, which has forecast for three days at home the amount of all types of taxes for the next few years. And something else is unusual: tax revenue is developing weaker than expected. The federal, state and local governments can still hope for increasing income from year to year. But this plus in the plus, this additional delta that can make life pleasantly easy for politicians, is now missing. There is an average of 30 billion euros missing every year until 2027.
Nonetheless, tax revenue continues to rise. This is less due to the fact that economic life is flourishing and thriving. The growth is rather meager. But the job market remains stable. That usually helps a lot. This time, however, the current estimate shows that the traffic light coalition has generously adjusted the income tax rate to inflation in response to liberal pressure. The law was not yet in force when the estimate was drawn up last autumn. That is why it was not taken into account according to the usual rules at the time. Now it had to be incorporated. This depresses the overall result noticeably.
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