The Minister of Finance is concerned about the competitiveness of the German economy. So he put together an aid package for her. In the cabinet, however, it has not yet been waved through.
Contrary to what had been planned, the cabinet did not pass the so-called Growth Opportunities Act by FDP Finance Minister Christian Lindner on Wednesday, a legislative package with tax policy measures intended to relieve the economy by around 6.5 billion euros a year. What it’s about: The Growth Opportunities Act is intended to strengthen Germany’s competitiveness and ensure more investment.
Lindner proposes almost 50 tax policy measures. The core element is the premium for investments in climate protection announced in the coalition agreement. Other proposals go beyond the SPD, Greens and FDP treaty (Read the following comment on the topic: Like me, like me: The traffic light messes up its own restart)
The Growth Opportunities Act – Lindner’s most important suggestions:
- Investment bonus: Companies that improve their energy and resource efficiency as part of an energy saving concept should receive 15 percent of the investment by 2027, regardless of their profit, but no more than 30 million euros. “There is a concrete incentive for companies to switch to climate neutrality more quickly,” said the Ministry of Finance.
- Tax research funding: Previously, only personnel costs were eligible for research and development. This is to be extended to proportionate investment costs. In future, up to 70 percent of the order value should be eligible for funding.
- Loss offset: With the loss carryback, a loss can be offset against the profits of the previous year. This reduces the tax burden for the previous year. This return is now to be extended to three years. The recently temporarily increased amount limit of ten million euros should apply permanently. From 2024 to 2027, restrictions on loss carryforwards are also to be lifted. This should increase the willingness to take entrepreneurial risks.
- Bureaucratic hurdles: In addition to the larger tax breaks, Lindner wants to remove various bureaucratic hurdles. Reporting procedures and bookkeeping obligations are to be simplified and data are to be transmitted electronically instead of on paper.
According to dpa information, the Green Minister for Family Affairs, Lisa Paus, has linked the issue to basic child security in the cabinet. It is intended to enable families to access state benefits more easily. The FDP accuses Paus of preventing relief with her behavior.
The measures from Lindner’s law were not enough to strengthen the economy and maintain jobs and prosperity, said Green Party leader Katharina Dröge. “An impetus is needed for the economy, jobs and the climate. That’s why I think further measures, such as an investment program for the construction sector and industry, are necessary. It’s therefore good that the coalition is still exchanging ideas.”
The deputy chairman of the Greens parliamentary group, Andreas Audretsch, also emphasized that the Growth Opportunities Act could be a good step forward. Both are needed: “Strong investment impulses to give our economy a good future and basic child security to get serious in the fight against child poverty.”
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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.
