Last week the Federal Finance Minister Peer Steinbrueck was presented at a press conference by the Federal Cabinet adopted the draft a reform of company tax.
particularly in the SPD a hotly debated project.
The explosiveness is the face of such a symbolic issue, at the the social democratic roots of the distribution between capital and labor attaches, apparently.
This is an ideological and categorical definition as it is recited by the side of the economic liberals, but also the political left, out of place.
It is worth not only the substantive debate, but especially the view of the policy commitments and promises that were made before the cabinet decision on the issue of corporate tax reform ...
election manifesto
will continue through the legal form and financing neutral business tax all businesses - corporations and partnerships - will be taxed uniformly.was known, does not reach that goal.
The corporate tax rate for corporations will be reduced from 25% to 19%. This provides more favorable tax environment in the future Germany. The lowering of corporate tax rate will be fully financed from the sphere of economic activity (revenue neutral).
decision - Extraordinary party convention in Berlin, 14 May 2006
The SPD is internationally competitive enterprises. Therefore, it is reasonable to reduce the nominal tax rates specifically. Requirement is for us that at the same time a sustainable Secure the German tax basis, and creative freedom be restricted. Closing the gap between the nominal tax rates and actual tax payments will ensure that the result is largely revenue neutral in the corporate tax .
be seen how easily is the goal of "revenue neutrality" of the election manifesto (reasonably) yielded the "far-reaching revenue neutrality." This is due to the realization that may come at a far-reaching tax reform to broaden the tax base during the period of transition to short-term tax losses. The Parliamentary Left demanded only a "revenue-neutral" Financing saw then, however, an also that the present passage makes more sense. It is understood to be "broadly revenue neutral" here before the just discussed between the background, a temporal control deficit in the hundreds of millions. Without discussing
deeply the pros and cons of a corporate tax reform to want to show the quotations that - regardless of personal views on content-aware, Peer Steinbrück outside the explicit position of the SPD is. As deputy party chairman, his task is to apply the decisions of the party (especially the highest decision-making body, the Federal Party) in the public and to contribute to Enforcement help.
He has clearly decided against the post of deputy party chairman associated responsibility and prefers the design capacity of the Government Office to enforce his personal performance.
A party member is in my view, not strictly bound by the decisions of the Congress, if they go against his conscience.
A Deputy party leader, however, obliged them.
is why Peer Steinbrück in this party office no longer sustainable.
being perceived by many to be stuck dealing with the party committees and the unwillingness to explain his reform (Fraction left because football game, party council early exit - was treated as the corporate tax reform) is not very helpful here.
Two smaller, substantive note on corporate tax reform
- by the Ministry of Finance put forward arguments, from 2010 through the higher economic growth, the revenue from corporate taxes already again far above the present level, is dishonest. Ceteris paribus, ie the corporate tax reform still a significant tax reduction.
- I always knew that between my positions and were Peer Steinbrück worlds. But I was also convinced that he is a competent expert, at least. I thought if he does something, I think the direction possibly be wrong, but one can assume that it makes the craft clean and correct. But even at this point, the finance minister has disappointed. exists across the political spectrum agree on the goal of equity investment (eg investment in their company) to promote.
The corporate tax reform history, however perversely, the opposite. Steurlich debt is preferred over equity.
As it says in a document by the Ministry of Finance:
In fact, it can lead to the withholding tax that shareholders of a corporation's own company with foreign-funded rather than equity, as the proceeds of equity with max. 48.33% and the maximum of debt. be loaded with 26.38%.
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