The Vice-Chancellor promises tax cuts, but denied information on provision of the necessary spending cuts. The Finance Minister has announced to roll back the debt, but says not who he wants to take away the money. Your Christian social partners from Munich say, saving even was not necessary. And over the spectacle stands a rapt Chancellor, to the lowlands of the ailing state finances prefers to say nothing more.
So turn out the players in the Christian liberal coalition government now to an extent as frivolous, which even shocked the cynics learned at the Federal Court.
This began with the recently adopted eight billion euros serious tax relief program. Since the reality objectors given the force of law in the office of a lie by the tax breaks for their clients to the "growth acceleration" transfigured. In fact, the adopted tax billions are for the benefit especially hotel owners, wealthy heirs and owners of capital, so only those people that will also increase with increasing net income their consumption any more. Even the higher child tax credit uses mainly the better-off, while poor families get nothing. And the claim that the now fifth reduction in corporate and income taxes within a decade would lead to higher investment is not true by repetition. In truth, there is no empirical evidence that tax cuts would ever improving economic performance. Detectable, however, that the thinning out of state revenue to reduce public investment. Not least because Germany is in education spending compared to the affluent countries of the OECD now slipped to the third-last place.
same time, the debt reached alarming dimensions. Even with the interest payments the Federal could be spending for all German universities are sometimes just tripled. In this situation, to promise more tax cuts, is simply irresponsible. In this respect, Finance Minister Schäuble would do well to reject this request. But he does wrong when he denied any claim that as from next year, he now wants to reach even by the Basic Law prescribed reduction of the deficit. His reference, this is the tax estimate to be seen in May, is just as negligent as transparent. The maneuver is to move only the major upcoming conflict to clear its debts to the period after the state election in North Rhine-Westphalia.
It is long been clear that the chancellor and her Finance Minister staatszersetzenden its coalition partners are a fundamental correction of the coalition agreement must wrest. The promise is not to increase taxes in the crisis, is only tenable if the grants would be reduced to the social and health insurance to tens of billions. This would at the same time the social security contributions are rising so dramatically that the government would raise the whole country against him. No coincidence, therefore, even union leaders are pushing for a financial transaction tax, as they call for the globalization critics for years. Would this have raised the taxes on property, inheritance and property only to the average level of OECD countries would, over 30 billion euros more in the treasury, and without reducing the purchasing power significantly.
If that too radical show, should consider the alternatives. The greater the interest hole in government finances, the more significant gulf between tax expense and the services provided for public services apart. Still, most people are at this state. But if it is not possible to reduce the interest burden, again, it will be widely accepted sooner or later disappear in the gap - and with it the political stability of the whole country.
Tagesspielgel online
Harald Schumann
12/01/2010 0:00 clock
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