December 5th, 2010
It is not easy to write about the financial policies of the new federal government. Iron discipline and a vivid imagination are prerequisites. For where the coalition agreement, specifically in financial matters is that he is often so incredibly boring that when reading even healthy people get an idea of the suffering of the sleeping sickness.Where it gets interesting, however, the contract remains often vague outline of the project only, leaving the rest to the imagination of the reader. This would not be bad if one could hope that the blanks are filled in convincing the next four years. But the experience is yet more reason to fear that some potentially large litters will contract in the daily mini-reform policies discouraged.
Annoying to the little things is not only exuded boredom of them, but also the uncomfortable feeling that various lobbies in the coalition negotiations immediately right at the table sat. So you can find around line 195 from the contract, the claim that “the taxation of annual car discounts for employees on a real windy fair measure” should be reduced. Who pays business tax and his company operates in rented property, which may be pleased to know that its base is slightly smaller, because the new coalition will “reduce the addition rate calculation in real estate rents of 65% to 50%” the. Nice for those affected, but under the heading krisenentschärfende measures should perform something only if one wants to work with all their might unintentionally funny.
Cases like this in the coalition agreement in large numbers this is about the hidden line in the hotel industry with 290 favoring the reduced VAT rate. Whether it is probably the Bavarian, or at the Rhineland-Palatinate hotel association was that here was the crucial access to executives? An example of too paralyzing indecision can be found from line 228 on the other hand, if the estate tax by the coalition partners even been recognized as inefficient mechanisms are not covered about principle, but instead simply reduced some tax rates and payroll amounts and time periods are shortened. There are no right in the wrong payroll system
Anyway, here it is also a bright spot. “We will enter into discussions with countries, to test whether the inheritance tax on tax rates and allowances can be regionalised” This would be a really epoch-making progress for the German federal system, because so that countries would finally have a little genuine fiscal autonomy. In times of the debt brake that would be more desirable, because if one prohibits the borrowing countries, then one must at least make them available to its own control, with which they can generate their own fiscal revenue needs accordingly. It is to be feared that there are plenty of prime minister be who want to expose any tax competition, so that this project will see the end of his coalition in the Bundesrat.
To the vague but potentially momentous declarations of intent also includes what is at line 269 in Koalitonsvertrag is: Here is proposing the coalition, the longer term to abolish the trade tax and the municipalities instead either to concede a larger share of sales tax revenue, or they incorporate a surcharge into the income and corporation to give. The most radical solution – eliminating the business tax in total tax revenue due to higher compensation shares – would make Germany a tax haven in corporate taxation, with average effective tax rates somewhere between Ireland and cheaper cantons of Switzerland. This plan would also cut the other hand, the municipal financial autonomy drastically and make communities dependent on centrally administered sales tax revenue. This is offset by a surcharge on the corporation would be as elegant approach: The tax system would be simplified by eliminating the business tax, the municipalities retained their autonomy and the company would continue to contribute to the financing of local public goods.