The Taxpayers’ Association and the business associations are campaigning for a complete abolition of the solidarity surcharge and are thus following the line of Federal Finance Minister Lindner.
The Taxpayers’ Association has called for the solidarity surcharge to be completely abolished and is thus supporting the ideas of Federal Finance Minister Christian Lindner (FDP).
“The solidarity should be dropped completely and for everyone,” said association president Reiner Holznagel to the newspapers of the Funke media group. In addition to companies, many skilled workers and skilled employees would also still pay this. Even if the Federal Minister of Economics is right to demand tax relief for companies, “then the government should start abolishing solidarity immediately,” emphasized Holznagel. “Many small and medium-sized businesses would also benefit from this.”
Support from DIHK
The German Association of Chambers of Industry and Commerce (DIHK) sees this too. “The complete abolition of the solidarity surcharge or a reduction in the corporate tax rate would be important signals of relief,” said DIHK President Peter Adrian to the Funke newspapers. All around 800,000 corporations continued to pay the solos, as did many sole proprietorships and partnerships.
Lindner and Federal Economics Minister Robert Habeck (Greens) agree that companies should be relieved, but are struggling to find the right path. Habeck has brought a special fund into play to solve structural problems. Lindner rejects this on the grounds that it would mean new debts. The finance minister, on the other hand, is relying, among other things, on abolishing the solidarity payments that higher earners and corporations pay.
SPD leader emphasizes his own suggestions
On Monday evening, Chancellor Olaf Scholz (SPD) expressed reservations about the debate about tax relief for companies. He referred to the planned Growth Opportunities Act, which is intended to promote the economy.
In the Funke newspapers, SPD leader Lars Klingbeil called it “good that Christian Lindner and Robert Habeck, as the responsible ministers, are working to further improve the economic situation in Germany and enable additional investments.” Klingbeil also referred to his party’s suggestions. “This includes more public and private investments in infrastructure, digitalization and education, reducing bureaucracy and combating the shortage of skilled workers.”
The Soli was introduced in 1991 – a year after German unification – and was intended to help finance economic development in the new federal states. It was levied until 2020 as an additional levy of 5.5 percent on income and corporation tax in order to finance the burden of reunification. Since 2021, only top earners and corporations have to pay it. Last year, the solidarity provided the federal government with income of around twelve billion euros.
Source: Stern
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