Berlin The federal and state tax revenues also increased significantly in August. They totaled 55.7 billion euros, 8.2 percent more than in the same month last year, according to the monthly report published on Tuesday by the Federal Ministry of Finance. In the first eight months, income rose by seven percent within a year to almost 463 billion euros. However, this was 1.7 percent less than in the same period in 2019 – and thus before the virus pandemic. However, the development of the more cyclical tax types is in line with the recent positive trends and developments in individual economic indicators, explained the ministry.
The economic upturn with the waning of the corona crisis should have a positive impact on the tax authorities. The gross domestic product rose by 1.6 percent in the spring quarter. According to the Ministry of Finance, the economy and the labor market are increasingly recovering from the consequences of the virus crisis. The industry is still suffering from the global shortage of certain materials. “The corona-related delivery difficulties for raw materials and preliminary products are currently preventing the full order books from being processed quickly.”
Meanwhile, the inflation rate in August was 3.9 percent, higher than it had been since the end of 1993. The ministry justified this with special effects such as the reduction in VAT a year ago. “A return to more moderate inflation rates can be expected in the coming year.”
IfW boss predicts wage increases of five percent a year
The Kiel Institute for the World Economy also predicts excessively high wage increases for employees in Germany in the foreseeable future, given the demographic development. “On average, wage increases of five percent per year are realistic,” said IfW boss Gabriel Felbermayr of “Bild”. The plus in industries in which skilled workers are urgently needed could be even higher. The situation for employees is better than it has been in 30 years.
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The reason for the strong wage increase in the next few years is that the number of available workers will gradually decrease from 2023 at the latest due to demographic change, according to Felbermayr. “The companies will therefore vie for employees more than they have been in decades.” A rise in the minimum wage and higher inflation would also help wages rise significantly more than before.
More: The Union’s immediate program would lead to revenue losses of more than ten billion euros for the state, according to calculations by economists. The financing is unclear.