Taxes, bureaucracy, innovation: How the finance minister wants to relieve the burden on companies

Taxes, bureaucracy, innovation: How the finance minister wants to relieve the burden on companies

According to a report from www.augsburger- Allgemeine.de, the finance minister criticizes the fact that companies in Germany bear too high a tax burden. In an international comparison, the average tax burden on German companies is 30 percent, while the average for large industrialized countries is 23 percent. In some municipalities they can even be up to 36 percent, which means a significant disadvantage in competition with other locations. However, the federal government is not prepared to at least waive the solidarity surcharge for companies. The critical situation for the German economy is also underlined by its low ranking in a ranking by the Center for European Economic Research in Mannheim.

This high tax burden has negative effects on the German economy. It makes it particularly difficult for companies to invest and be innovative. In comparison with other leading economic nations, Germany falls back to 18th place. The country also has to contend with other challenges, such as high levels of bureaucracy and a political climate that sees entrepreneurs as opponents. This means that Germany is no longer considered the top address in the start-up scene. Instead, Israel is a leader in this area. Not only the automotive industry, but also the chemical and pharmaceutical industries are increasingly shifting their production to countries with lower taxes.

It therefore makes sense to provide tax relief for companies in Germany in order to strengthen their competitiveness. The finance minister is therefore planning a tax program that could include, among other things, super depreciation and more favorable tax rates for company founders. These measures could help make Germany more attractive as a location and promote investment activity.

Source: According to a report by www.augsburger- Allgemeine.de