1 percent is burdened, 95 percent is relieved: The SPD ideas for income tax reform are met with a lot of criticism. Expert Grimm also sees problems in other points of the SPD paper.
The “economic method” Veronika Grimm interprets the new SPD economic concept more as an election campaign maneuver and is not convinced about the content. “You won’t get enough from the top one percent (of income tax payers) to finance everything you imagine,” said Grimm on Deutschlandfunk. The SPD paper envisages relieving the burden on 95 percent of taxpayers and taxing the one percent at the top of the income scale “slightly more heavily”.
According to SPD leader Saskia Esken, this is about those earning incomes of 15,000 euros or more per month. The SPD board approved the economic paper on Sunday; This Monday he will conclude his closed meeting to prepare for the federal election.
Investment support is highly complex
The economist Grimm is a member of the Advisory Council for Overall Economic Development, whose members are also known as economic experts.
She considers the depreciation options discussed to be useful. A consensus can be reached here that more favorable conditions would be created for those companies that invest.
However, according to Grimm, many small-scale measures, funding programs and conditionalities under which funding is awarded would cause a lot of uncertainty in the economy. “Because it creates unpredictability and you have a high level of complexity when you want to make investment decisions,” she explained.
When asked about the feasibility of financing the SPD’s economic concept, she said: “It certainly cannot be financed on its own, but you have to loosen the debt brake.” On the other hand, even slightly easing the debt brake doesn’t create much “leeway” if you don’t want the debt level to rise permanently.
Source: Stern
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