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Germany's big fiscal gamble: raising VAT to 21% to cut personal income tax. A consumer own goal that would also hit Italy? - Economic Scenarios
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Germany's big fiscal gamble: raising VAT to 21% to cut personal income tax. A consumer own goal that would also hit Italy? - Economic Scenarios
Berlin is trying again. In an economic climate already burdened by energy tensions stemming from the conflict with Iran, the German government led by Chancellor Friedrich Merz is considering an orthodox fiscal measure that would now be highly procyclical: shifting the tax burden from income to consumption. The underlying idea, currently being hotly debated within the coalition, calls for a two- to three-percentage-point increase in Value Added T…
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