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Germany rakes in record tax income

The Local · 27 Jan 2012, 15:23

Published: 27 Jan 2012 15:23 GMT+01:00

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Germany’s long resilience to the eurozone economic crisis appears to be wearing down, even though the Finance Ministry reported a record tax income of €71 billion in December 2011 – a 4.1 percent increase on the same month the year before.

That was a significant slowdown from previous months: November saw a 7.6 percent increase and October a 8.5 percent increase.

Tax income growth slowed steadily throughout 2011, but remained healthy – increasing by 10.8 percent in the first quarter, and 6.1 percent in the fourth.

But the latest figures may hide some cause for concern, since December is traditionally the strongest tax month of the year, since it contains extra spending and income over Christmas.

Germany’s federal budget for 2011 has reflected the positive figures, with the country only taking on €17.3 billion in new debts. The federal government’s interest payments for the year totalled €32.8 billion.

The government’s prognoses for 2012 predict a slow start to the year as Germany struggles to manage the eurozone’s currency crisis, followed by a recovery in the second half of the year.

“The economy seems to be recovering and the tax income is strong,” Alfred Boss, economist at the Kiel Institute for the World Economy (IfW), told financial daily Handelsblatt. He predicts that the state could once again make ends meet with just €17 billion in new debts this year.

Story continues below…

DPA/The Local/bk

The Local (news@thelocal.de)

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Your comments about this article

00:41 January 28, 2012 by Pakistani
germany 's strategy is really coool.... suck as much money from people as you can....... citizens (people who enjoy full benefits of german nationality from cradle till grave) and "guest workers" alike. I have been a student in germany for about 3 years...... after being in bremen and having had "free" education, I feel like we (foreigners) were brought here with a well thought out plan ie : attract natrionals from the "third world" countries, give them substandard education. when they get a job, extort half of their salary as tax. my question is : I never got any help (like bafog) form germany,...... NEVER any kind of support. I worked in factories, resturants for as much as 5 euros per hour. NO ONE helped me!........ why the ***k should I pay upto 45 percent of my pay as taxes and a "pension fund"???..... after holocaust, suckin' blood seems to be the next best thing among german flag bearers......
15:14 January 28, 2012 by Michel_Berlin
Well...reading your..erm...statement....the question springs to mind: WHAT ARE YOU DOING HERE???

Get lost man!
15:49 January 28, 2012 by murka
Well, what "pakistani" is writing was indeed the case just a few years ago. Foreign workers were obliged to pay into the state pension fund but were unable to claim a pension. This is what I was told few years back from by German employer.

Luckily, this situation has changed, I guess after the EU led standardization. If you are leaving Germany for good, you may claim all the payments back. Maybe worth to try, "pakistani"?
14:56 January 29, 2012 by raandy
Nothing is perfect but Germany's finances appear to be more so than the rest of the EU members.
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