Germany's Müntefering Criticises CDU's 'Insane' Tax Plans

by Ulrika Lomas, Tax-News.com, Brussels

17 July 2009

Speaking at a party conference in Weiden, Chairman of Germany’s Social Democratic Party (SPD) Franz Müntefering referred to tax cut promises unveiled recently by the Christian Democratic Union (CDU) party, as utter “madness”.

According to the SPD leader, such reckless and irresponsible promises to introduce tax reductions amounting to around EUR30bn are insane, as they simply can not be funded.

Although the CDU and Bavarian sister party the Christian Social Union (CSU) have approved their joint election programme, an internal dispute has once again flared up within the Union regarding a concrete date for implementation of the planned tax reductions.

Eager to announce the proposed introduction of reductions in income tax from 2011, the CSU will also call for the introduction of a regional inheritance tax in Germany – an initiative not contained in its joint election campaign, and currently opposed by leaders of the CDU.

Despite denying any rift emerging between the two German sister parties, CSU Chief Horst Seehofer has revealed that a forthcoming election announcement by his party is due to finalised during a party conference this weekend.

Meanwhile, economic and financial experts are warning of the dire consequences of spiralling state debt. According to the “Bund der Steuerzahler”, the German association of taxpayers, per capita debt in Germany is set to exceed EUR20,000 this year, and to reach EUR24,500 by the end of 2012.

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