Costly political failure: SPD wants to raise taxes and weaken debt brakes

The German political failure must be financed: tax money is distributed to strangers around the world – and nothing should change. But tax revenue is no longer enough. So the SPD now wants to reform income, inheritance and gift taxes as well as debt breaks; The so-called top earners are to be robbed even more than before through a “temporary crisis levy” – this emerges from a key proposal that the SPD’s executive committee approved on Monday.

The tax burden for companies and private households in Germany is already very high. So it is not surprising that rich people move abroad. The SPD would probably like to push this even further because, according to a key proposal to be presented at the SPD party conference in early December, they are aiming for serious additional burdens for high earners – apparently on a massive scale. Redistribution is about scale. After all, further restructuring of the economy and society will have to be paid for.

The Social Democrats are calling for a fundamental income tax reform – although this “reform” represents plunder from those who largely finance Germany. According to the SPD, wealthy taxpayers should also contribute a “temporary crisis levy” to finance the political failure. The amount of the levy is not clear at present. From a taxable income of 277,826 euros – double the amount applies to married couples – the so-called rich tax rate of 45 percent applies. However, it’s clearly not enough for socialists that these people are already handing over almost half of the money they earn to finance mass migration, green climate madness, dangerous WHO dictatorships, warmongers, and the like. Are. As a reminder: The top ten percent of taxpayers contribute more than half of total income tax revenues in Germany. Without these payers the country would look very old.

Furthermore, inheritance and gift taxes should be restructured so that “multi-millionaires and billionaires contribute more to the common good”. With these types of taxes, money that has already been taxed is taxed again and these taxes now have to be increased even further. States’ additional tax revenue should flow solely into “education” through inheritance tax reform. To this end, the SPD is proposing a “German Education Pact”. Do you mean actual teaching here – or preaching?

Furthermore, according to the SPD, the solidarity surcharge, now payable in income tax only on top earners, should be re-established and continued as a “future tax”.

Taking advantage of loan breaks

Furthermore, there have been calls for reform of the debt brake as it “poses a risk to Germany as a location and prosperity.” This thesis seems strange, since the individual risk to Germany’s prosperity is likely to lie in the green Ministry of Economic Affairs. According to the SPD, debt rules need to be changed to enable greater investment in infrastructure, climate protection, digitalisation and education. “Anyone who still believes the market controls everything is either not looking closely or ignoring the realities,” the guide says. However, the fact is that the “market” in Germany has long been undermined by politics. For example, green craze for “renewable” energy or electrification of mobility would stand no chance in a free market.

At the same time, the SPD wants to increase expenses for companies by further increasing the minimum wage and is in favor of reducing working hours with full salary compensation. Successful entrepreneurs should cut more taxes and pay their employees more money for less work.

To encourage a “climate-neutral” restructuring of the economy and society, the Social Democrats want to enable investments worth 100 billion euros (!) annually with new loans. There is also a “Germany Fund”, which aims to be supported by government money and private capital from investors. One million new jobs are expected to be created in Germany. In reality, this red tax hammer will only drive more entrepreneurs abroad, leading to the loss of jobs.

The main proposal, which is intended to serve as a programmatic guideline for the program for the 2025 federal election, is unlikely to be well received, at least not by the FDP. Liberals reject relaxing the debt breaks as well as tax increases or additional fees. At present, there does not seem to be much possibility of such leftist illusions coming into effect.

Hyperinflation alone brings huge additional revenue to the state. Germany imposes taxes on its citizens like hardly any other country. In the Federal Republic the problem is not of revenue, but of expenditure. Instead of ousting those who have long been responsible for the largest share of state financing, spending and, as a result, taxes should be reduced. However, currently only AfD is targeting this course in Germany.