2023-10-13 18:50:09
The Union used the first reading of what is probably the most important tax law of this year to accuse the coalition in general and the FDP in particular of failing in the fight against the poor economic situation. The response from those attacked came immediately in the Bundestag on Friday, saying: This is a consequence of 16 years of CDU-led governments. But of course there was also debate about the so-called Growth Opportunities Act as such.
“Our country is at a crossroads, whether growth or stagnation, whether at the top or mediocrity. It is high time that the course was set correctly and our economic model was refounded,” said Parliamentary State Secretary for Finance Katja Hessel (FDP) at the beginning of the debate.
She represented her party colleague Christian Lindner, the finance minister is taking part in the annual meeting of the International Monetary Fund in Marrakesh. The FDP politician held back from attacking her political opponent. She soberly listed the planned improvements. “With the Growth Opportunities Act, we are providing impetus for more innovation and investment, especially for medium-sized companies – with a relief effect of around 7 billion euros.”
Who benefits?
Specifically, the federal government’s draft law provides for improvements in the deduction of tax losses. It strengthens companies’ liquidity if they have to pay tax on fewer profits by being able to claim current losses more quickly to reduce taxes. In addition, a bonus is planned for six years for investments that are very energy efficient and thus promote climate protection. 15 percent of eligible expenses (maximum 200 million euros) should be allocated.
In contrast to a depreciation solution, companies that did not make any profits also benefited, Hessel argued. It is also planned that movable assets, but also residential buildings, can be depreciated more quickly. In addition, the research allowance should become more generous. In addition to personnel costs, material costs should be funded. The planned interest rate cap and the new reporting requirement for national tax planning are burdensome from the perspective of the economy.
“Homemade structural deficits”
The deputy chairman of the Union parliamentary group, Mathias Middelberg, stated: “We are the only industrialized country that is shrinking economically.” The traffic lights are making people poorer. The Growth Opportunities Act contains the right approaches, “but whenever things get exciting, they don’t just stop there halfway, but rather for a shorter period of time.” The investment bonus is meager and super bureaucratic. And further: “The relief volume is obviously completely inadequate.” The government is funding a chip factory in Magdeburg with 10 billion euros and another in Dresden with 4 billion euros. “And now they want to show us that 7 billion in relief will trigger a growth spurt for the entire German economy.”
While in opposition, Lindner accused then-Chancellor Angela Merkel (CDU): “Anyone who ignores the economy should not be surprised by problems from the right.” Now the FDP probably wants to do some things differently, but is in the lead the coalition’s anti-growth policies. “Anyone who receives citizen’s benefit from you is in a good place, anyone who works for you in this country is in a very bad place,” complained Middelberg. “Today you are showing everyone how to govern incorrectly.”
The FDP financial politician Markus Herbrand replied that an entire speech was needed to correct all the false allegations. Middelberg is right that we are not just dealing with economic problems. “We are dealing with homemade structural deficits.” This is the result of a policy that has put the interests of the economy aside for many years, he indirectly criticized the Union. The FDP politician admitted that he was not convinced by the new interest rate cap and the planned reporting requirement for national tax planning models. They thwarted the goal of generating growth and reducing bureaucracy.
Alexander Armbruster, Sven Astheimer and Jonas Jansen Published/Updated: , Recommendations: 101 A comment by Manfred Schäfers, Berlin Published/Updated: , Recommendations: 15 A comment by Mark Fehr Published/Updated: , Recommendations: 92
The financial policy spokeswoman for the Green Party, Katharina Beck, announced that she wanted to make the bill even better through the parliamentary process. According to her, previous governments are to blame for the current economic crisis because of the German economy’s “lumpy dependence” on Russia and China. The SPD MP Parsa Marvi said tax policy is not the only “game changer” for more growth. “But we can use it to provide impetus.” The planned additional depreciation for residential construction is an important signal.
AfD politician Jörn König said the Growth Opportunities Act was a great name, but there was nothing behind it. The draft is a negative example of German bureaucracy: on 250 pages you will find around fifty smaller individual measures. Matthias Birkenwald (Die Linke) criticized that the problem of double taxation of pensions would not be solved with the small planned change. The plan is to allow the tax share of pensions to rise more slowly.
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