Budget surplus in Germany: Financial schizophrenia

Actually, it is currently to future capacity and infrastructure. For this the state needs money, he shouldn't spend for the tax cuts. It's about future viab

Budget surplus in Germany: Financial schizophrenia

Actually, it is currently to future capacity and infrastructure. For this the state needs money, he shouldn't spend for the tax cuts.

It's about future viability: U-Bahn Station Savigny road in Essen, photo: Rupert upper houses/imago-images

if you make political demands, would do well to take into account the great debates. What are we talking about this company instantly? Climate, energy transition, bad Internet in the country, suspended areas, differences between West and East Germany. Supposedly high taxes for citizens and companies are not in focus. This finding may help in the question of what would be to start with the new Surplus in the Federal budget.

With 13.5 billion euros of the Federal government in 2019, has recorded the highest budget surplus since reunification. Despite the global economic problems, the German Economy ran under the dash well. In such a Situation, you can call for tax cuts, as the FDP and parts of the Union to do. A certain plausibility is inherent though. The United States have reduced their profit tax for companies, other rich countries as well. Anyone who wants to, may see this as a growing disadvantage of German companies in international competition. The actual problems of the local export economy are, however, not on the cost side, but in structural breaks: the car industry needs to clarify its model range, elec.

As the major political debates suggest, it is now mainly for the future. Infrastructure, energy supply and public services are not at the height of the time. For these challenges the state needs money, he shouldn't spend recklessly for tax cuts. It is not a counter-argument that, at present, many billions of euros are spent, especially in States and municipalities because of the poor staffing of planning departments.

This condition only changes when the begun investment continues offensive. Only then it has to be set for countries and communities make sense of new planners. To know this need, to put the state money in tax cuts, would be a kind of financial schizophrenia.

Updated Date: 15 January 2020, 10:00

TAZ

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