In the debate about tax relief for companies, the Taxpayers’ Association is going one step further than Finance Minister Lindner and is calling for the solidarity surcharge to be completely abolished.
The Taxpayers’ Association has called for the solidarity surcharge to be abolished and thus supports the considerations of Finance Minister Christian Lindner (FDP). “The solidarity should be dropped completely and for everyone,” said association president Reiner Holznagel to the newspapers of the Funke media group. Lindner’s advance doesn’t go far enough for him.
In addition to companies, many skilled workers and skilled employees would also still pay this. It’s all about “protecting trust,” said Holznagel. “People have relied on the fact that the solidarity will no longer apply when the special financial aid for the five new federal states expires.”
Even if Federal Economics Minister Robert Habeck (Greens) is right to call for tax relief for companies, “then the government should start abolishing solidarity immediately,” emphasized Holznagel. “Many small and medium-sized businesses would also benefit from this.”
The FDP and the Greens agree on one point
The German Chamber of Industry and Commerce sees this too. “The complete abolition of the solidarity surcharge or a reduction in the corporate tax rate would be important signals of relief,” said DIHK President Peter Adrian to the Funke newspapers. As before, not only all around 800,000 corporations paid the solos, but also many sole proprietorships and partnerships.
Lindner and Habeck agree that companies should be relieved, but are pursuing different approaches. Habeck had spoken out in favor of a corporate tax reform and brought a special fund into play to solve structural problems. Lindner rejected this on the grounds that it would mean new debts and suggested eliminating the solos that higher earners and corporations have been paying since a tax reform in 2021. SPD leader Saskia Esken and Green Party leader Ricarda Lang rejected the proposal.
The Chancellor reacts cautiously
In the Funke newspapers, SPD chairman Lars Klingbeil called it “good that Christian Lindner and Robert Habeck, as the responsible ministers, are working to further improve the economic situation in Germany and enable additional investments.”
Chancellor Olaf Scholz (SPD) reacted cautiously to Lindner’s initiative. The SPD politician called on Monday evening to concentrate on enforcing the Growth Opportunities Act, which is currently being discussed in the Mediation Committee of the Bundestag and Bundesrat. “That’s what you should focus on. It’s practical, tangible and works quickly.”
Last year, the solidarity provided the federal government with income of around twelve billion euros.