Chris Burford asked:
>So what is happening about the negotiations on corporate tax rebates?
The laws just passed are only the first step in 'reforming' (in the negative
sense of the word) the German tax system. Beside what has been mentioned in
other posts we will get higher energy and gas taxes on April 1st. So its
reallly not a tax reduction for average working class people, but just a
shift from direct to indirect taxes.
What are going to be the next steps is still a little bit vague at the
moment. But the following issues are beeing discussed:
- Another big cut in corporate taxes. The Green Christine Scheel called for
a tax rate of 23% (now its 40%).
- Income taxes for families with children have to be reduced. But not
because the red-green government wants to do so, but becasue they have been
forced by the Constitutional Court to reduce these taxes.
- It is lookink that either energy and gas taxes are increased again or/and
that the VAT is going to be increased. Especially the federal states are
favouring a VAT increase, because they receive a fixed share of it.
Generally the Greens are the advocates of a tax reform, in the sense that
they are calling for lower corporate taxes. Where as the union wing of the
SPD is trying to change as little as possible, thus being very defensive.
But its obvious that the union bureaucracy can not raise the slogan 'Tax the
rich'.
Johannes