EZA 944 Report: Germany

28 April 2010

EZA944/28Apr10: Germany – FDP triggers tax debate, receives beating

 

• At its 25Apr party congress the FDP endorsed its plans for tax reform, granting (a further) €16bn in tax relief on top of this year’s €8bn.
• The next dates for the German tax debate will be the presentation of the tax estimate on 6May and the important state elections in North-Rhine-Westphalia on 9May.
• Based on the German institutes’ growth forecast of 2.5% nominal growth this year and next, a slight increase in tax intake can be expected compared to previous estimates.
• The debate between the government parties will be on whether this may be used to speed up the exit from fiscal expansion next year or for tax relief and streamlining the tax system.

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