>>From Reuters
>
>3/20/99
>
>GERMANY: TAX REFORMS PASS
>The upper house of Parliament, ignoring industry opposition, passed tax
>reform measures that had been drafted by Oskar Lafontaine, who quit as
>Finance Minister after a power struggle with Chancellor Gerhard Schröder.
>The legislation, already approved by the lower house, introduces tax cuts
>for families and small companies and requires employers to make social
>security contributions for part-time workers.
Isn't part of the tussle about what the average level of corporate tax will turn out to be: Lafontaine was looking to 40%, Schroeder to 35%. The calculation is likely to be complex because of the fine detail of which of the many tax breaks for companies are going to be lifted, when and how.
So I take the point that Lafontaine's tax reforms are going through, and that his successor, Eichel was closely involved in drawing them up, but we should still look out for a real shift in the balance of forces, with Lafontaine's departure.
So what is happening about the negotiations on corporate tax rebates?
Chris Burford
London