US EditionGermany Plans Tax Cuts to Boost Stagnant Economy
- The administration led by Chancellor Friedrich Merz intends to implement tax reductions and invest heavily in infrastructure throughout 2025 to stimulate economic growth.
- The measures respond to a persistent slump caused by high energy and labor costs, Chinese competition, and U.S. Trade barriers, with zero GDP growth forecast.
- The government aims to quickly pass measures offering tax incentives for innovation, capital expenditure, and electric vehicles used by businesses, along with gradual reductions in corporate tax beginning in 2028, amid ongoing intense parliamentary negotiations.
- Finance spokesman Maximilian Kall emphasized that the primary objective is to stimulate the economy immediately, while Deutsche Bank Economist Robin Winkler described the plan as a helpful short-term boost for the manufacturing sector, though he noted it is not a comprehensive solution.
- The €500 billion spending over 12 years and €17 billion annual cost by 2029 aim to upgrade infrastructure and stimulate growth, but reforms and wise spending remain necessary for lasting impact.
30 Articles
30 Articles
The Federal Government wants to boost the German economy and promises companies billion-dollar reliefs. Not all are enthusiastic: countries and municipalities are threatened with high tax losses.
Hindustan Times
Daily SunGermany plans tax cuts to boost stagnant economy
Germany plans tax cuts to boost stagnant economy
The Federal Finance Minister has completed his first draft law on the planned investment package. Companies are therefore given new possibilities for depreciation, and corporation tax is also to be reduced. But what does this mean for the state funds?
The "reliefs" are growing over the years and are expected to amount to 17 billion euros in 2029. Klingbeil wants to implement agreed measures from the coalition agreement with the law.
Federal Finance Minister Klingbeil is launching comprehensive tax cuts for companies. According to several media reports, there is a corresponding bill. Among other things, the purchase of electric cars is to become more attractive for tax purposes.
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