Businesses Allied To Merkel Call For Stealth Tax Solution
by Ulrika Lomas, Tax-News.com, Brussels
23 June 2014
The business wing of German Chancellor Angela Merkel's Christian Democratic Union (CDU) party has called for the Government to commit to raising tax thresholds in line with inflation to stem stealth income taxation.
The CDU's small business union (MIT) said the personal tax-free allowance and income tax thresholds should automatically and regularly be adjusted in line with inflation. This would prevent taxpayers from paying tax in higher rate bands when wages increase faster than income tax thresholds, commonly known as bracket creep, but generally referred to as "cold progression" in Germany.
The union said that thresholds should only be frozen in exceptional circumstances, for example in the event of a budget crisis. It said it would champion the concept at the CDU party conference in December. The CDU's coalition partner, the Social Democrats (SPD), has made clear, however, that the party will only agree to tax cuts if they are funded through a hike to wealth taxes.
To see today's news, click here.
Tax-News Reviews

A review and forecast of Cyprus's international business, legal and investment climate.

A review and forecast of Malta's international business, legal and investment climate.

A review and forecast of Jersey's international business, legal and investment climate.

A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »