In order to stimulate the economy and create incentives to buy, the federal government wants to reduce the value added tax from 1.
In the first five months of the current year, tax revenue fell by 6.3 percent compared to the same period in the previous year. Community taxes, including wage tax, fell by 7.5 percent, and federal taxes by 2.9 percent. In the case of pure state taxes, however, there was an increase of 7.5 percent. Because many companies have sent employees on short-time work, wage tax revenues in May fell by a good 10 percent compared to the same month last year.
Sales tax revenue fell 21 percent. Air traffic, which has largely come to a standstill, led to a minus of almost 97 percent in the air traffic tax. In order to stimulate the economy and create incentives to buy, the federal government wants to reduce the value added tax from July 1st for a period of six months from 19 to 16 percent. The reduced rate is to be reduced from 7 to 5 percent for six months. This Friday, the Bundestag is deliberating in a first reading on the corresponding economic stimulus package and the necessary supplementary budget.
To finance this, the second supplementary budget provides for an increase in new debt by a further 62.5 billion euros to a total of around 218.5 billion euros. Never before has a federal government taken on so many new debts. Source: ntv.de, cri / dpa “The fight against the virus is tearing holes in the state treasury. (Photo: imago images / Dean Pictures) Five years ago, public budgets recorded the last Sometimes a deficit in the first half of the year. However, the spread of the coronavirus will cause unimagined expenses in 2020 – while revenues collapse.
The corona pandemic is a burden on public budgets and has created a funding deficit for the first time in years. The income of the federal, state, municipal and social security budgets fell in the first half of the year compared to the same period of the previous year for the first time since 2012, according to the Federal Statistical Office in Wiesbaden. The sum fell by almost five percent to 709.4 billion euros. At the same time, expenditures rose by 8.6 percent to 797.8 billion euros. The gap leads to a cash funding deficit of 89.8 billion euros, as the Federal Office reported.
The public budget last recorded a deficit for the first half of the year in 2015. The information relates to the preliminary results of the core and extra budgets of the quarterly cash statistics. The reason for the drop in income was lower income from taxes and similar charges, explained the Federal Office. The increased expenditure could also be mainly explained by higher allocations and grants as a result of the corona pandemic. The federal government and its extra budgets alone paid around 34.4 billion euros more in the first six months than in the same period last year.
This includes immediate aid to companies as well as payments to support hospitals. Source: ntv.de, fzö / dpa / AFP “In Lubmin, natural gas is to arrive in the future and be distributed across Europe. (Photo: imago images / Eibner) From the pipeline Nord Stream 2 benefits two places in the northeast in particular: The components are currently stored on Rügen. The natural gas is to arrive in Lubmin in the future – and with it trade taxes for the municipality. Overnight everything is on the brink. The situation is somewhat reminiscent of the Asterix -Stories in which the small Gallic village is confronted with a Roman superiority – Sassnitz on Rügen and Lubmin in the structurally and human-poor Western Pomerania are in the middle of a conflict whose protagonists want to assert their influence, some thousands of kilometers away. Between Washington, Moscow, Brussels and Berlin have been hot for a long time because of Nord Stream 2, and now the question is whether the Nord Stream 2 project worth investing in Initially, a sanctions law was passed in the USA aimed at investors and companies involved in the gas pipeline.https://123helpme.me/argumentative-essay/ Now the poisoning of the Kremlin critic Alexej Navalny has rekindled the debate, and suddenly the German government is no longer quite as clearly behind the far advanced project. According to earlier information from Nord Stream 2 AG, the US sanctions would have significant consequences.
You would meet more than 120 companies from at least twelve European countries directly, including more than 40 German companies. They would prevent investments of around 700 million euros to complete the pipeline and also undermine investments of around twelve billion euros in legally approved, largely completed EU energy infrastructure on Rügen, Frank Kracht. The place of the 53-year-old and the ferry port Sassnitz-Mukran was recently targeted by three US senators.
In the port, the pipes for the controversial Nord Stream 2 gas pipeline were encased in concrete, stored and transported from there to the open sea to the laying vessels. The senators threatened the ferry port, where thousands of pipes are still stored, with severe sanctions because of its role in the construction the pipeline. “” The Fährhafen Sassnitz GmbH is to be destroyed “”, Kracht interprets a corresponding letter. Economic and legal sanctions are threatened – also for the employees. “” That was the height of audacity for me. “” Because there is a risk that in the future companies will look for another Baltic Sea port to do their business. A good 150 of the two strings of the pipeline – a total of 2,360 kilometers long – are still missing, which in future will deliver up to 55,000 billion cubic meters of gas annually.
Many people in Western Pomerania demand that the line be completed. Experts in Moscow are now assuming that the first gas – if at all – will not be pumped through the pipes until next year. Originally, the line should have been in operation for a long time. The nuclear power plant in Lubmin was one of the two GDR power stations. It was built by the Soviet Union. It was in operation for a good decade and a half until 1990. (Photo: imago images / Eibner) In addition to Sassnitz, Lubmin, a good 20 kilometers east of Greifswald, plays a central role in logistics: the natural gas should arrive there and be distributed from there.
Even the small seaside resort suddenly saw itself as a plaything of world politics. The Vorpommern State Secretary of the Schwerin state government, Patrick Dahlemann, also sees the positive effects of the pipeline. It was felt everywhere that the construction workers were there. Politically, however, Dahlemann is more cautious: “” The state government cannot participate in the games that are reminiscent of the Cold War scenario. “” The memory of those times when Germany was still divided and the Soviet Union was very close is in Western Pomerania still exists in many places. This past shapes the mood, said Lubmin’s Mayor Axel Vogt. ““ Many people are still close to Russia. ”“ During the construction of the Lubmin nuclear power plant, which went into operation in the 1970s, there were many Russian specialists in the region, and their children went to the same schools. According to Vogt, people in Lubmin are also questioning the events surrounding the poisoning of Nawalnys, in connection with which calls for a construction stop on Nord Stream 2 are loud. Perhaps the group of suspects should be drawn much larger, says Vogt.
The full-time lawyer also emphasizes that the pipeline was built on the basis of international building permits. “When calls for a construction stop are now loud, I ask myself what has that got to do with the rule of law.” “In the event of a construction stop, what about the dismantling, which in turn would cost billions? Who is responsible for the compensation due? Vogt does not yet want to deal with the economic aspects of Nord Stream 2. He knows, however, that the business taxes of the old Nord Stream 1 pipeline, which went into operation in November 2011, amounting to 1 to 1.5 million euros annually make up around 20 percent of total business tax income. The landing station for the gas from Nord Stream 2 has already been completed. “” If Nord Stream 2 is not finished, we would have a major investment ruin, “says Vogt.
That wouldn’t be a good advertisement for interested parties. Source: ntv.de, Joachim Mangler, dpa “Because of the Corona crisis, the federal, state and local governments will have to get by with almost 19.6 billion euros less tax income than expected in May. From 2022, tax estimates will again expect income at pre-crisis level, as announced by the Ministry of Finance in Berlin. Source: ntv.de “The Federal Ministry of Finance is registering somewhat higher tax revenues again. The previous year’s level has not yet been reached. (Photo: imago images / Steinach) In view of the corona pandemic, German tax revenues have fallen again – unlike in previous months, however, only slightly.
There were significant slumps in wage tax in particular, and after the sharp slump caused by the corona, the state’s tax revenues recovered somewhat in July. They were only 0.3 percent below the values of July 2019, according to the latest monthly report from the Ministry of Finance. One reason for the better figures is, among other things, that many companies deferred tax payments in the spring are now due.
In principle, the corona crisis continues to burden tax revenue, according to the report. The wage tax has decreased significantly, among other things through short-time work. According to economists, Germany is slipping into the worst recession to date since the Second World War as a result of the crisis and massive restrictions. In June alone, tax revenues were 19 percent below the level of June 2019.
They have fallen by eight percent since the beginning of the year. For the year as a whole, the federal government is currently anticipating a tax reduction of almost ten percent. The bill does not include pure municipal taxes. The federal government had decided to provide billions in aid for companies and employees, as well as tax relief – and an economic stimulus package to help the economy pick up speed again. This also had a negative effect on tax revenues. Recently, however, there have been cautious signs of an economic recovery, the report says.
Industrial production is picking up, and foreign trade is also doing better again. The labor market is also recovering in spite of the high number of short-time working. Revenues from aviation tax fell particularly sharply compared with the same period in the previous year from January to July – there was a 72 percent decline. The income from the beer tax also fell by almost a quarter, probably due to the temporary closure of bars and beer gardens. On the other hand, there was an increase in the tobacco tax: The Bundestag had decided to add two additional budgets due to the Corona crisis, so that the federal government can take on a total of 217.8 billion euros in new debt this year.
An extraordinary tax estimate is planned for September, on the basis of which Finance Minister Olaf Scholz wants to present the draft for the 2021 budget. Source: ntv.de, ino / dpa “The tax rate on corporate profits is around 30 percent higher in Germany than in comparable countries . (Photo: picture alliance / dpa) The Trump administration’s tax cuts have given the US economy a boost. Other countries are also turning their taxes to strengthen their locations. The last corporate tax reform in Germany, on the other hand, is ten years old According to a media report, in view of the deteriorating economy, the CDU Economic Council has called on the federal government to cut taxes and reduce bureaucracy along the lines of the US.
While other countries such as the USA, Great Britain or France have used tax policy as an instrument of location policy, Germany is in “a deep sleep in economic policy”, reports the “Rheinische Post” “, citing an existing key point paper for corporate tax reform. The last corporate tax reform dates back to 2008. Tax sources were still gushing, but instead of making provisions for the foreseeable bad times, the black-red coalition was increasing social spending. According to the newspaper, Secretary General Wolfgang Steiger accused the SPD in particular of lack of expertise and “” expensive happiness programs “” in front. The middle class is “” criminally neglected “” by the SPD. “” Our most important competitors have now adopted major corporate tax reforms and reduced the tax burden for their companies to 25 percent. “” We must react quickly to that, he warned. In Germany, the rate is currently 29 to 35 percent. Source: ntv.de, ddi / rts “Walter-Borjans and Esken want to first work through the task list of the base with the Union. (Photo: dpa) The new SPD leadership wants to join the Union will shortly discuss a number of topics for the second half of the legislature.
First of all, it is about processing the party congress orders. Subsequently, under certain conditions, a Union issue could come on the agenda. The new SPD leaders are ready to negotiate with the Union about its demand for lower corporate taxes. That is “” basically conceivable, “said party leader Saskia Esken. “” But the equalization has to take place on the right side.
That shouldn’t be borne by small and middle incomes. “” But if, like the Union, you place great value on a budget without new debts, you have to keep income stable, said Esken – at the expense of the richer, not the poor. The Union and many business representatives are campaigning for a major reform of corporate taxation. In view of the weaker economy, they want relief for companies – also because taxes have been cut in the USA and other countries. Finance Minister Olaf Scholz has so far rejected a comprehensive reform. International tax cut competition must be avoided, he said.
Otherwise there is a risk that the state will no longer be able to fulfill its tasks. Esken and her co-chairman Norbert Walter-Borjans want to first address the issues that the SPD party congress gave them in the talks at the halfway point of the legislature has: more investment, a higher minimum wage and better climate protection. After that, however, things could also come on the table that have so far been a red rag for the coalition partner, including the idea of basic child protection, she announced again and again, Esken announced. There are currently many children who could not have the support. “Although the services from the education and participation package have been improved, many people are overwhelmed with the individual applications for every school trip,” said the SPD leader. “The Union could also be convinced of this fact.” “Walter-Borjans does not want to give up on the question of a wealth tax either.