Finance Minister Christian Lindner and Economics Minister Robert Habeck want to work together on tax reform for companies and further relief for the economy in order to make German companies more competitive. However, both politicians disagreed on the question of financing. Last week, Habeck brought a special fund worth billions into play to relieve the burden on companies. He mentioned tax credits and tax depreciation options. Lindner rejected a special fund, saying it would mean new debts.
Lindner and Habeck were willing to compromise
Die However, ministers appeared open to working together on measures. “We have to do more for growth and economic dynamism,” said Habeck “World on Sunday”. Overall, Germany has corporate taxation that is no longer internationally competitive and no longer investment-friendly enough. He would like to work with Lindner on a “dynamization package”.
In the ARD program “Caren Miosga”, Habeck referred to the government’s Growth Opportunities Act, which has not yet cleared the Federal Council hurdle due to concerns from the states. He described his idea of a special fund as an “invitation” to talk about easing the burden on the economy. Habeck also suggested improving depreciation options for companies for quick investments. This makes sense if a company says, “Now I’m building some new production facility, now I’m investing in hydrogen or in the electrification of processes, that this will receive tax advantages so that we can stimulate value creation and production in the country.”
FDP for abolition of the solidarity surcharge for companies
Lindner has welcomed the Economics Minister’s initiative to relieve the burden on companies in Germany. Lindner told ARD that Germany was no longer competitive. He agrees with Habeck on this. He advocates abolishing the solidarity surcharge for companies. This is the quickest and easiest way to get relief. Another advantage is that municipalities and municipalities are “not called upon” as a result, only the federal government. However, options for counter-financing must be discussed within the federal government.
Scholz expresses himself cautiously
In the evening, Chancellor Olaf Scholz expressed reservations about the debate initiated by his ministers Habeck and Lindner. The SPD politician referred to the already planned Growth Opportunities Act, which is intended to promote the German economy. This is a “very good project” for which a mediation process is currently underway between the Bundestag and the Bundesrat. “I hope that this very concrete and very practical project, which is intended to make it easier for companies to invest, will become something even with the approval of the states,” said Scholz. “That’s what you should focus on. It’s practical, tangible and works quickly.”
DIHK would welcome tax reform
The German Chamber of Commerce and Industry welcomes the fact that the Minister of Economic Affairs is in favor of a tax reform. “It is good if the federal government wants to change its current economic policy in important areas,” said DIHK President Peter Adrian to “Welt”. It is crucial that companies regain confidence in Germany as a location. Significantly more private investment is necessary, especially in times of transformation towards climate neutrality. The federal government should see a reform of corporate taxation as an important element of its economic location policy and investment promotion.
SPD is critical of the restructuring of corporate taxes
The SPD is critical of Habeck’s latest proposal for restructuring corporate taxes. The Bundestag faction’s financial policy spokesman, Michael Schrodi, told MDR AKTUELL that tax rates are less important for companies than targeted investments in infrastructure.