Financial expert calls for immediate abolition of the solidarity surcharge for companies and higher earners

Financial expert calls for immediate abolition of the solidarity surcharge for companies and higher earners

According to a report by www.tagesspiegel.de, the Taxpayers' Association is calling for the solidarity surcharge to be completely abolished, thereby joining the demand of Federal Finance Minister Christian Lindner. The German Chamber of Industry and Commerce (DIHK) also supports this demand. The debate about tax relief for companies continues to be heated. Chancellor Olaf Scholz expressed caution and referred to the planned Growth Opportunities Act. Leading FDP politicians are calling for more leadership from Scholz and would like clear signals regarding tax relief. The abolition of the solidarity would relieve pressure on both companies and medium-sized businesses and could lead to a positive growth spurt in Germany.

The abolition of the solidarity surcharge would give companies and medium-sized businesses significantly more financial flexibility. It would lead to relief for taxpayers and at the same time stimulate the economy by reducing the financial burden at the company level. The federal government's income from the solidarity surcharge amounted to around twelve billion euros last year. Calculating the impact of a complete elimination or partial reduction of the soli is extremely complex and requires a detailed analysis of federal tax revenues and expenditures. If solidarity were to be abolished completely, this would create a hole in the state budget that would have to be filled by other measures such as increased taxation of other income areas or a reduction in spending. Overall, however, the abolition of solidarity could have a positive effect on the financial sector and the market by relieving the financial burden on companies and businesses and thereby increasing the willingness to invest.