to abolish When it comes to the solos, seems to be in this country almost every Argument, somehow. As the economy seemed to grow endlessly, it was said, the people would have to finally reap the fruits – so: solidarity Supplement to get rid of. Now the crash of the economy and the fruits are threatened and? Clear: Soli abolish. Because of the help against the impending recession. The has with regard to the logical rigor of the argument. No matter.

The question is rather whether it helps against the actual threat of a downturn, the solos to abolish, not only partly, as already advised, but.

And best of all are the taxes for companies to reduce quickly the second great requirement, which is booming in days from trade associations, and Christian Merz and Friedrich Lindner-circles, and of Orthodox Economists, such as the Freiburg Lars field as very urgent. Because Germany threatened to fall international just awful in the worst places, in terms of the tax rates. And the “existential threat” (BDI-President Dieter Kempf) for our poor economy. And such a tax reform would exercises will help against the “economic Decline”, as DIHK President Eric Schweitzer of the year reported.

Really? Possible that the stimulus would all help – only at the least, the solos to be abolished and to reduce corporate taxes. As bizarre as it may sound at first. And as nice as it to each person Concerned, of course, is to pay less taxes, even rich people need a change, what you can look forward to.

a state budget is not a feel-good box for Association members, Villa owners and friends of Orthodox Economics. In real life also, tax cuts do not fall from the sky. Either need to be made but, again, debt or other money is missing. Both are no deadly argument, clear. Only pay the case then, the relief act economically and other ways to spend money, really less important and promising.

the solos, to benefit stabilize especially Rich

a toppling economy, should tax cuts work so that people spend properly more money – so the economy has to do, in spite of the downturn still not enough and companies must lay off employees. In the case of the Soli is rather unlikely: About half of the German pays, thanks to allowances and the Like, anyway – the overhead for a Single without children with a gross annual € 16,000 at all, in the case of a family with two children, even at 60,000 euros, as the Berlin’s tax expert Stefan Bach of the German Institute for economic research (DIW) calculates that.

What do you mean By the abolition would feel only a half of the German a bit. What is even more stupid: more Than half of the solos revenue numbers so far, the Top 10 percent of the Rich in the country, the output in turn in front of a loud money, only a smaller part of additional Zasters at all, so in the case of a discharge in the economic cycle would give. Even if Hildegard certainly a fancy solos-chains knocking around. The Rest goes on the high side and not the output. The help, which is not much, the threat of about to lose in the automotive industry, your Job, if the economy recovers soon again (and people buy cars).

reduce a tax, is in a battle against a General economic downturn, so not much more efficient than, say, to shoot the money in the us facing away from the side of the moon.

Now, of course, could be that the Soli-removal in a different way but still acts as an “investment program”, as the economic Council of the Union raises just cocky in the round – because some company pays also solos and the removal would benefit. Especially when for all other corporate income would be reduced expensive. Dream of all the bosses.

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here, Too, appearances could be deceiving. Although the taxes have been reduced for companies in countries such as the USA, the UK, France, Belgium or Italy, some of them already – or will soon. And it may be that one or the other boss will try to shift the one or other of the profit to the foreign, instead of investing the money with us. Tax competition.

Actually, it is after all the experience in reality, rather rare. The tax rates are relatively unimportant – unlike the Lobby-Lamento suggests. “If companies in the domestic market, they will invest there,” says David Milleker, chief economist at Union Investment.

Where was the investment boom, as profits increased?

Would be so crucial, what are companies to tax on profit, it should have made in the past years in Germany are an incredible investment boom. After all, the economy has made in the sum never as much profit as in the past years. Invested still less than in previous Upswings. Something more it was first, as of 2017, the economy is temporarily in the domestic powerful delivery since there are things in the world, is also wounds the desire to invest again. This has nothing at all to do with tax rates only to a very limited extent.

If the companies do not invest, despite the flood of money, it is daring simply to assume that they would do it, if you get thanks to tax gifts even more. That makes economically no sense. What, in turn, is also the Nagging absurd act, after which it go because of international tax competition is no way to lower the taxes here. Allegedly Donald Trump is driving then the German site, yeah in Ruin, because he has lowered the tax rates in the United States so drastically.

If that were so, it would have been in the US since the trillion-tax-gifts to give a year ago historical investment waves. And? Nothing.

“Since trump’s Reform of company taxation has subsided, momentum for Investment in the United States,” says the Paris economic expert Véronique Riches-Flores. Worse still, The heads of companies have purchased with Trumps money, pack your own share, what about months, the shares have strengthened and by the end of 2018 in the Crash – ended bubble in the United States. You could also say: Rarely is so much money generated by the taxpayer before may, so economically senseless, been frittered away.

tax competition? You Serious?

something to react to, our Federal government now, with similar tax cuts? Because it is international tax competition? Not Serious, are you?

to abolish The solidarity surcharge, would cost Germany’s Finance Minister almost 20 billion euros – nearly two-thirds of which relieved the richest ten percent of the population. To reduce the corporate tax from 15 percent to 10 percent, that would still mean a good 17 billion euros less in the box office, DIW-tax expert Bach – what is the most almost exclusively (16 billion), the richest ten percent of the population would benefit from.

and Thus the majority would be of the Surplus away, the German state budget in 2019. For something that would help against a recession, but money for other things missing.

And the Poor and the rich in the country continue to drift apart could be; because it’s almost only the rich and reinterpreted by Mr Merz’s or our Minister of economic Affairs-makers just terribly disadvantaged performance – although the top ten percent of the count already of the largest, if not the only big winners of the upswing for a decade. At a disadvantage? Because you have to get for years, no tax gifts? Heartbreaking.

It must be a strange understanding of Economics, to find the good. Or lovely naughty lobbying.