The state does not have a revenue problem, but a distribution problem

Lars Klingbeil

The SPD boss wants to ask the rich to pay more.

(Photo: dpa)

The SPD wants to develop a new tax concept. Party leader Lars Klingbeil has already laid down the route: “We need more money.” Without higher income, the necessary investments in education, digitization and infrastructure would not be possible. And of course the rich should pay more.

In fact, the need for investment is large. Bridges, locks and roads have been allowed to rot by the federal governments since 1998 – in which, incidentally, the SPD was almost always involved.

Daycare centers, schools and universities are still not “lighthouses”, as the former SPD leader Sigmar Gabriel called for many years ago, but historical museums in which technical progress can be viewed as it was in the 1970s – keyword overhead projector. Unless the ceiling comes down first.

So there is enough to do. But if the state doesn’t have one thing, it’s an income problem. Measured against economic output, income from taxes and duties is at an all-time high. And the burdens will continue to rise: social security contributions will reach even higher record levels in the next few years. The traffic light is now paying the bill for the expensive social reforms of the grand coalition.

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Employees, who are already struggling with inflation, are being burdened more and more, as are companies, who, in addition to high energy costs, are now also having to cope with higher non-wage labor costs.

Tax increases economically dangerous

In this situation, driving revenues to new record highs is economically dangerous, unjustifiable and also an extremely undemanding intellectual policy.

But that doesn’t mean that the SPD has nothing to do with tax policy, on the contrary. The state does not have an income problem, but a distribution problem.

While taxes are particularly high for the lower middle class, taxes on inheritance or the sale of real estate are often zero. This is where the SPD has to start.

Heirs and real estate sellers would have to be more heavily burdened, the working middle would be relieved. A slightly higher top tax rate for counter-financing would also be in order if such a big hit were to succeed. Conservatives and liberals also admit that, unfortunately only behind closed doors.

But the SPD does not need a new tax concept for all of this. She would just have to get her old one out of the campaign. That was really good because it dispensed with tax policy whims such as a wealth levy. Unfortunately, that is not to be expected with the new SPD tax concept.

More: Weak poll numbers – the coalition is working on a restart

source site-18