The budget dispute in the traffic light recently escalated. Finance Minister Lindner called for compliance with the debt brake. The tax ratio at a record level should now support his position.
Measured against economic output, citizens and companies in Germany have never paid as many taxes and social security contributions as recently.
The rate is at an all-time high, according to finance ministry sources. Reference is made to the latest available figures from 2021.
Ministry against higher tax burden
According to ministry figures, the tax ratio that year was 42.4 percent of gross domestic product. In 2010 it was only 38.6 percent, and in 1960 it was only 33.4 percent. The ministry concludes that calls for a higher tax burden are currently out of place.
The fact that tax revenue increased from around EUR 467 billion to more than EUR 830 billion between 2000 and 2021 shows that the state has no revenue problem. Finance Minister Christian Lindner (FDP) recently asked his cabinet colleagues to cut spending and save in order to achieve a balanced budget while complying with the debt brake.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
