Germany plans income tax cut for 2016

[Tender Branson]

Income taxes 'to be cut from 2016'

Finance minister Wolfgang Schäuble spoke last week about cutting income tax to reduce what is known as “tax bracket creep” under which employees who get pay rises slip into higher tax groups, making their net pay lower than before.

According to Spiegel this tax cut would be two percent and could now be introduced in 2016.

However, the plan would depend on backing from the Conservative-led government’s junior coalition partners, the Social Democrats (SPD), who have campaigned against tax cuts.

SPD leader Sigmar Gabriel is largely supportive of the plan, but leading members of his party on Monday warned against any tax cuts without raising government revenues elsewhere.

The government budget, however, does appear to have room for the cut. Spiegel reported that Germany’s surging tax revenues will mean an additional €7 billion heading into government coffers in 2015, €9 billion in 2016 and 2017, and an extra €11 billion in 2018.

http://www.thelocal.de/20140505/german-income-taxes-to-be-cut-by-2016

[Franzl]

I encourage people that would otherwise be quick to criticize tax cuts for ideological reasons to consider the current German tax situation.

Especially considering the good budget and the clear unfairness of the current system ("Kalte Progression"), this is probably a good idea.

[windjammer]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

[Franzl]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

[DC Al Fine]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Well that's just obscene. I seriously would've thought the Germans of all people would have had incremental progression.

[Person Man]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Well that's just obscene. I seriously would've thought the Germans of all people would have had incremental progression.

This. Then again, the Europeans in general have a lot of good and bad ideas.

[Snowstalker Mk. II]

The SPD is a complete joke.

[windjammer]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Seriously? No, I don't have any problem with that.

[Franzl]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Seriously? No, I don't have any problem with that.

So less money despite better actual pay? Kind of absurd.

If you really want more revenue (which Germany doesn't need, as we have a balanced budget), then raise the upper brackets, but the status quo isn't something I could ever consider just.

[windjammer]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Seriously? No, I don't have any problem with that.

So less money despite better actual pay? Kind of absurd.

If you really want more revenue (which Germany doesn't need, as we have a balanced budget), then raise the upper brackets, but the status quo isn't something I could ever consider just.

I don't understand what it is absurd.
Instead of cutting tax, Germany could definitely have a more progressive budget with the new revenues. I don't know, ending (partially or not) Harz IV would be great. This bill is definitely terrible.

[Person Man]

I'm against tax cuts, simply because it will reduce the role or the potential role that could play the state.

You don't have any problem with income increases actually resulting in a lower net amount?

Seriously? No, I don't have any problem with that.

So less money despite better actual pay? Kind of absurd.

If you really want more revenue (which Germany doesn't need, as we have a balanced budget), then raise the upper brackets, but the status quo isn't something I could ever consider just.

I don't understand what it is absurd.
Instead of cutting tax, Germany could definitely have a more progressive budget with the new revenues. I don't know, ending (partially or not) Harz IV would be great. This bill is definitely terrible.

Though I am not certain that cutting taxes to free up cash for investment automatically raises revenue in the long run. If the Government doesn't need the money and isn't in a benefits mood, it definitely makes since to give money back.