Good news and bad news from Germany

Discussion in 'Europe' started by nosarcasm, Jul 16, 2005.

  1. nosarcasm
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    nosarcasm Active Member

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    Through my weekend reading I was informed that the conservative coalition
    I planned on voting for has in their wisdom decided to raise
    the sales tax from 16 to 20%.

    In order not to upset the common German voter in return
    they would put beer under the food exemption rule that
    would halve the tax on beer.

    Oh well.

    This or socialism. Hard choices ahead. :(
     
  2. onedomino
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    onedomino SCE to AUX

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    That type of tax policy does not bode well for the future of the Germany economy. 20 percent sales tax? Wow, what a club to beat down economic growth and consumer spending. Why doesn't the CDU campaign on cutting taxes?
     
  3. nosarcasm
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    nosarcasm Active Member

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    the FDP campaign on that, and the CDU lost their mind or something.

    I really dont get it. Cutting down the welfare state not new tax hikes.
    Especially on sales tax that hit consumers the most.

    They talk about cutting some taxes for companies but frankly
    the sales tax should be lowered to 10 -12% to give incentives
    to the domestic market.

    Germany's problem was not the export but the domestic market
    that was hurt by high savings rates because many
    people a fearfull the social system might be cut down.
     

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