NEWS
Germany's Merkel Reprimands Tax Rebels
Determined to present a united front this week, as her party, the Christian Democratic Union (CDU), finally unveils its election programme, German Chancellor Angela Merkel successfully managed to silence remaining tax rebels ahead of the ratification meeting.
Unanimously approved by both the CDU and its Bavarian sister party the Christian Social Union (CSU), the election programme contains a number of pledges to cut taxes, although a firm date for implementation of the agreed tax reforms remains as yet unconfirmed.
Vehemently rejecting proposals put forward recently by party dissidents to raise taxes following the elections, leaders of both parties, Angela Merkel (CDU) and Horst Seehofer (CSU), reprimanded those involved, fiercely criticising them for expressing their opinions at such a crucial time, especially given that a clear course has already been set by the party. Chancellor Merkel has repeatedly refused to increase taxes, maintaining that to do so would prove severely damaging to the economy.
Baden-Württemberg’s Head of Government Günther Oettinger recently evoked the idea of raising certain reduced VAT rates, in exchange for lowering other rates, while Sachsen-Anhalt’s Head of Government Wolfgang Böhmer proposed to increase the top rate of income tax.
Despite an outward display of unity, however, mounting tensions between the two parties may yet threaten the Union’s fragile relationship. Eager to announce a concrete date for the introduction of the various tax cuts, the CSU party is already signalling 2011 as a possibility. Nevertheless, up until now, the CDU has rejected this request.
Key tax measures outlined in the Union’s election programme include the party's pledge to lower the first rate of income tax in two stages from 14% to 12%, and its commitment to increase the threshold for the top rate of income tax progressively from EUR52,000 to EUR60,000.
Quelle: Tax-News.com
