As Germany’s newly formed coalition government holds its first cabinet meeting in Meseberg, freshly appointed Economics Minister and Free Democratic Party (FDP) member Rainer Brüderle has insisted that the government honor its recent pledge to introduce a graduated system of income tax rates.
According to Brüderle, the government has firmly embedded its aim to implement vital tax reductions via the introduction of a new system of graduated tax rates and other measures at the heart of its coalition contract. Brüderle emphasized that a graduated system is much simpler and more tangible than the country’s existing system of linear tax rates.
Despite his very public message, Brüderle has, nevertheless, signaled his willingness to compromise on the fine details of the reform, stating that it is inconsequential whether or not three or five tax rates are introduced.
Defending the government’s proposed tax cut plans, Brüderle explained the need to introduce additional tax relief measures in order to support Germany’s economic recovery, to strengthen domestic demand, and to boost growth. In the long term, sustainable growth will lead to a rise in tax revenue and contributions for the government, thereby restoring public finances, the Minister added.
The FDP’s leader and German Foreign Affairs Minister Guido Westerwelle has also made known his willingness to compromise on reform of the country’s system of taxation. Although Westerwelle has repeated his calls for a lower, simpler, and more just system of taxation, he has nevertheless indicated that it is not the scale of the reform that is of prime importance, but the outcome. The prerequisite for growth is a reduction of the tax burden borne by families, and by low- and middle-income earners, as well as by the middle classes, he continued.
The cabinet is due to discuss the priorities for the 2010 budget, and to set the course for further proposed tax relief measures for 2011.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment