Tax hikes forecasted by Business Development Initiative

The Federation of German Industries (BDI) has voiced its opposition to tax increases, following the current tax estimate. In a statement made on Thursday afternoon, BDI CEO Joachim Lang emphasised the need for a convincing tax policy strategy to secure future tax revenues and reduce high public debt.

Lang believes that relief and attractive tax frameworks are the way out of the corona crisis for pandemic-hit German companies. He suggests that Germany needs to reduce the tax burden on companies to an internationally competitive level of 25 percent. To achieve this, he proposes a uniform corporate tax that integrates the trade tax into income taxes.

The BDI CEO has highlighted the German corporate tax system as an "obvious competitive disadvantage" that is growing year by year. He believes that this disadvantage is hindering Germany's competitiveness, both domestically and internationally. In support of his argument, Lang points to the significant drop in corporate taxes in other countries.

The plan proposed by the BDI to reduce the German corporate tax burden to an internationally competitive level of 25 percent is called the "broad-based investment program". This program aims at strengthening resilience, infrastructure, and transformation.

However, Lang warns that tax increases would drive the economy into a wall. He stresses the importance of public investments and increased investment activity for the next decade to secure future tax revenues and reduce high public debt.

The photograph accompanying this article is of income tax, as reported by dts Nachrichtenagentur. The BDI's call for tax reforms comes as Germany seeks to remain competitive in a rapidly changing global economy. The BDI CEO's statements underscore the urgency of addressing the issue of corporate taxation to ensure Germany's economic prosperity.