12-point plan to strengthen Germany as a business location - solutions to ease the tax burden for companies

12-point plan to strengthen Germany as a business location - solutions to ease the tax burden for companies

According to a report from www.welt.de, the Union faction has proposed a 12-point immediate program for the German economy in order to strengthen Germany as a business location. One point of the program is the limitation of social security contributions to 40 percent of gross wages and the tax incentives for overtime. According to an annual calculation by the Leibniz Center for European Economic Research (ZEW), the effective tax burden for profitable businesses in Germany is 28.3 percent, compared to 24.2 percent in France and 23.6 percent in Italy. Even Great Britain is more attractive at 25.6 percent. A complete abolition of the solidarity surcharge, as proposed by Federal Finance Minister Christian Lindner (FDP), could reduce the effective tax burden to 27.6 percent. This would at least bring Germany on a par with the United States.

The proposed reduction in corporate taxes to 25 percent, as demanded by Boris Rhein, could strengthen Germany's competitiveness and stimulate economic growth. A reduction in the tax burden and additional depreciation options for companies could promote investment and make Germany more attractive for international companies again. Discussions about possible tax measures for the economy are currently underway, and a decision on tax reform could have positive effects on the German market and the financial sector.