On September 26, 2021, a new Bundestag will be elected in Germany. In order to generate government revenue and fill gaps in the treasury, which have been widened not least by the Corona pandemic, tax policy has a key role to play. The problem could be that, due to the sharp increase in debt, there is an overemphasis on fiscal policy motivated by budgetary considerations.
The election programs of the parties are an indicator of the directions in which the respective parties want to go with their tax policy. The SPD (social democratic party of Germany) and Die Linke (democratic socialist party) focus on higher taxation of high incomes and lower taxation of low incomes. Bündnis 90/Die Grünen (green political party) are also more on the side of the SPD and Die Linke in terms of tax policy. They are also calling for the introduction of a wealth tax. The FDP (free democratic party, a liberal political party) represents the antithesis to these tax programs and calls for greater relief for companies and citizens, as well as market-based mechanisms in the area of climate protection. Tax reduction proposals also come from the ranks of the CDU (Christian democratic union) and CSU (Christian social union). The CDU/CSU and the Liberals (PDF) agree on a maximum tax burden of 25% for companies and reject a wealth tax.
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