Lindner dismisses: Economic methods suggest rich solos

Economic experts predict a mild recession in Germany from 2023 onwards.

Lindner dismisses: Economic methods suggest rich solos

Economic experts predict a mild recession in Germany from 2023 onwards. In order to finance the cost of the government relief packages, they are proposing a soli for the rich. SPD and Greens think the idea is a good one, Finance Minister Lindner gave it a resounding no.

The economic wise men's proposal for higher taxation of high earners met with rejection from Federal Finance Minister Christian Lindner. The federal government intends "not to raise taxes," said the FDP politician in Berlin in the afternoon. In their annual report presented at midday, the economic experts explained that "partial financing" of the state relief measures in the energy crisis "by a strictly limited increase in the top tax rate or the introduction of an energy solidarity surcharge for higher earners could be considered". This would also help "to increase the targeting of the overall package of credits and burdens and to signal that the energy crisis must be tackled in solidarity," the panel argued.

Chairwoman Monika Schnitzer defended the proposal. "If you give government aid to high earners unnecessarily, you should take some of it away from them," she told the "Handelsblatt". However, possible tax increases should "really only affect the top earners" and would have to end at the same time as the relief measures.

Lindner, on the other hand, said that the federal government is sticking to "that we have to relieve the burden in this situation". The country is experiencing a phase of economic uncertainty - additional tax burdens would be "enormously dangerous," warned the FDP leader. In addition, high earners already made a "disproportionate contribution" to state financing. Employer President Rainer Dulger made a similar statement. "In view of the multiple challenges for companies, politicians are called upon to do everything possible to secure jobs in Germany as a business location and to secure value creation. Tax increases are certainly not one of them," he explained.

On the other hand, representatives of the SPD and the Greens had already expressed support for the advance of the economic experts on Tuesday. "I welcome the fact that the economic experts are picking up on the SPD's demands in their annual report and suggesting that higher earners and people with very high fortunes get more involved in overcoming the crises," said SPD chairwoman Saskia Esken of the "Stuttgarter Zeitung". the "Stuttgart News".

Economic experts are predicting a recession in Germany for 2023: Economic growth of 1.7 percent will be achieved for this year, and the gross domestic product (GDP) is likely to fall by 0.2 percent in the coming year, according to the annual report by the German Council of Economic Experts. The experts also estimate that inflation, after 8 percent this year, will be at a high 7.4 percent next year.

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