Share

Germany, 6 billion less in taxes in 2013-2014

Merkel's government approves new tax cuts that will mainly benefit upper-middle income groups - On average, this is 25 euros less per month per taxpayer - The opposition labels the "mini-reduction" as mere propaganda for electoral.

Germany, 6 billion less in taxes in 2013-2014

From 2013 and 2014 the Germans will pay 6 billion less in taxes. This is foreseen in the new package of measures launched yesterday evening by Angela Merkel's executive after a cabinet meeting that lasted several hours. The tax cuts will mainly affect lower and middle income groups. An initial reduction of 2 billion will already take place in 2013, when the next general elections will take place in Germany. Another 4 billion in 2014.

A spokesman for the Ministry of Finance spoke of an average tax relief per taxpayer of around 25 euros per month. In this way, the German government intends to "thank the citizens for the many losses suffered due to the international financial and economic crisis".

Tax relief had been the Liberal Party's main electoral promise during the 2009 campaign, but the recession and the European debt crisis had so far prevented it from delivering on its commitments.

The government has also reached an agreement for the support of families who do not send their children to nursery school, as well as an understanding for new ones financing in the sector of assistance to the sick and elderly.

The package will have to be examined by the Bundestag, where the Executive enjoys a clear majority, but also by the Bundesrat, the Chamber of Laender, where it is in the minority. The opposition (Social Democrats and Greens) have defined the "mini tax reduction" as a move of pure electoral propaganda.

comments