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Coalition forced to weigh up tax hikes

The Local · 28 May 2010, 16:28

Published: 28 May 2010 16:28 GMT+02:00

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Business daily Handelsblatt quoted an unnamed government source as saying that a limited group of taxpayers might have to accept paying more.

“It’s not about the introduction of a new tax like the wealth tax, rather very much about the additional burden for a reasonable group of taxpayers,” the source, described as “government representative”, told the paper.

Even leaders within the pro-business Free Democrats (FDP), who have had to curb their ambitions to cut taxes and have, in the past, ruled out rises, now admit some hikes may be necessary, the paper cited sources in government circles as saying.

It was not known where any increases might be made. Previously, leaders of both coalition partners – Angela Merkel’s Christian Democrats and the FDP – have ruled out any general increase to the sales tax.

But there was talk of evening out the inconsistencies brought about by reductions on sales tax in specific product areas, Handelsblatt reported.

“Several billion euros could be saved here,” a coalition source told the paper.

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However, tax rises are still strongly opposed by many in the government.

“I am absolutely against tax increases,” said Hans-Peter Friedrich, the leader of the parliamentary group of the Bavarian conservatives, the Christian Social Union. He pointed that the centre-right coalition had not spoken of tax rises for a long time.

The Local (news@thelocal.de)

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Your comments about this article

23:37 May 28, 2010 by The-ex-pat
The standard German answer to all problem!
13:31 May 29, 2010 by JohnnesKönig
If they really want to increase revenues they would cut taxes as Angela promised!

But it seems we are on the hook to bail out a Greek problem... Too big to fail? Now where have I heard this?
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