Chief of the economy for tax cuts
The head of the economic experts, Christoph Schmidt, has spoken out for tax cuts. “Other countries such as the United States have reduced business taxes. Germany has fallen back in the international tax competition,” said Schmidt of the German press Agency in Berlin.
The tax burden had increased in the Era of Chancellor Angela Merkel. “By now, a Signal to reduce the tax burden for businesses and citizens would be appropriate. It also includes a complete abolition of the solidarity surcharge is part of.”
In the coalition, a complete removal is controversial. In the coalition agreement, the CDU and the SPD had agreed, the solos should be eliminated for 90 percent of the payers. Large parts of the Union, but as the economy of a complete abolition. The SPD is against it.
Schmidt also expressed criticism of the coalition’s course in economic policy. “The policy has looked at the economic Highly to the Growth of the German economy and necessary reforms are not tackled,” said the President of the RWI-Leibniz Institute for economic research. “The coalition has set, instead, on social, political favors for specific groups, such as mothers’ pension, or the pension with 63.” It is, therefore, structures need to be changed in order to strengthen innovation and growth forces.
In Spite of a weaker growth, Schmidt advises to keep calm. “But there are of course big risks that will accompany us for quite some time, in particular, the possible escalation of international Trade disputes and the organisation of the Brexit.” The slower growth was initially like nothing Grey. “But the less the economy we have, the greater the risk is that we have a crisis-like aggravation that comes from the international environment, throwing off the track.”
The Chairman of The expert Council for the assessment of overall economic development (economy), criticized at the same time, plans of the SPD for a basic pension without a means test. “In the case of a basic pension one has to ask, whether you fought accurate old-age poverty,” said Schmidt. “If a Person receives a small pension, but a spouse that receives a very high pension, she is not needy. A basic pension without a means test can therefore be difficult to justify.” The Union argues for a new basic pension with means test.
