The SPD in Germany competes for the legacy of conservative Finance Minister Schäuble
By
Peter Schwarz
23 June 2017
On Monday the German Social Democratic Party (SPD) presented its tax plan for the national Bundestag (parliamentary) election in September. The plan picks up from and continues the ruthless austerity policies introduced by the current finance minister, Wolfgang Schäuble (Christian Democratic Union—CDU).
The SPD sticks to Schäuble’s “black zero,” i.e., a balanced or positive budget, and rejects any tax on wealth, despite the fact that income for the super-rich in Germany is exploding through the roof.
It takes all the cynicism and political impudence of the SPD to portray this concept as a contribution to “social justice.” SPD chairman and its leading candidate, Martin Schulz, justified this claim with a few minor changes in taxes and duties, which together amount to just 15 billion euros ($US16.7 billion).
The income tax rate for mid-level incomes is to be somewhat lower than before. The top tax rate of 42 percent will first apply to individuals earning a yearly income of 60,000 euros, instead of the previous figure of 54,000 euros. The tax rate then rises to 45 percent for incomes over 76,200 euros per year. An additional 3 percent is then to be levied on yearly incomes of 250,000 euros and over.
German tax law already provides many opportunities for tax depreciation and other loopholes, plus income from investment is subject to a flat rate tax of 25 percent. This means that the SPD’s proposals will have barely any consequences for the wealthy.
Schulz introduced his tax proposals at the SPD headquarters (Willy-Brandt-Haus) in Berlin flanked by two parliamentary deputies, the mayor of Hamburg, Olaf Scholz, and the head of the SPD in the…