FRANKFURT (Dow Jones)–Federal Economics Minister Robert Habeck (Greens) has spoken out in favor of corporate tax reform. “I also see that overall we have corporate taxation that is no longer internationally competitive and investment-friendly enough,” he told Welt am Sonntag. “That’s exactly why we should think about how we can finance tax relief and tax incentives for investments in the future, for example, in order to really unleash the forces.”
He was responding to criticism from his cabinet colleague Christian Lindner (FDP) of Habeck’s proposal for a special fund for investments in future areas with relief for the economy. Lindner told Welt am Sonntag that the idea had not been coordinated. “The economics minister is saying that he is dissatisfied with the federal government’s existing economic policy and that he believes something completely different is necessary.” Lindner suggested a “dynamization package”. These included more flexibility in the labor market and the reduction of bureaucracy. We should extend the tax incentives in the Growth Opportunities Act for investments and research towards a corporate tax reform,” added the Finance Minister.
Habeck now said he was ready to work with Lindner on a “dynamization package”. But he doesn’t want to save money on citizens’ money. There is little financial leeway, “but if we really want to develop force to keep up with the USA, we can’t do it with a zero round of citizen’s money.” Habeck is alluding to the fact that Lindner is demanding that citizens’ money not be increased at the end of 2024.
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(END) Dow Jones Newswires
February 04, 2024 01:19 ET (06:19 GMT)