Traffic light government: Dobrindt warns of tax increases due to budget dispute

traffic light government
Dobrindt warns of tax increases due to budget dispute

CSU regional group leader Alexander Dobrindt has warned of tax increases in view of the budget dispute in the traffic light government. He has “no confidence in the FDP that they will fend off further tax hike requests from the Greens and SPD,” said the chairman of the CSU deputies in the Bundestag of the German Press Agency in Berlin.

He criticized: “The fact that the traffic light cannot agree on a budget with absolute record tax revenues for the federal government in 2023 and further tax increases and high levels of new debt are in the air is a clear expression of a lack of financial seriousness.”

Sharp criticism of Lindner

“Tax revenue is exploding – VAT revenue is increasing due to inflation, income tax revenue is increasing due to wage settlements,” said Dobrindt. Instead of talking about tax cuts “so that employees can keep more of their wage increases in their pockets, this traffic light speculates about new debts and tax increases”. Heralds are the increase in inheritance tax in the real estate sector and the five to six billion euro increase in truck tolls, “which consumers will have to pay,” said Dobrindt. “The traffic light has thus created the access ramp for further tax increases.”

Dobrindt sharply attacked Federal Minister of Finance and FDP leader Christian Lindner. “When the Federal Minister of Finance accuses his coalition partners of not recognizing financial realities, that is tantamount to an oath of disclosure,” he said. A government that is heading for a “budget blockade” not only unsettles the economy and society in Germany, but also the European partners. As the largest economy in Europe, Germany needs solidity and seriousness in its finances again. “A budget blockade exacerbates the traffic light imbalance.”

Debate on the debt brake

Usually, key figures are presented before the final government draft for the budget – but Lindner recently announced that he would not do so this year. The ministers had announced additional requests of around 70 billion euros, for which he sees no leeway if the debt brake is adhered to and tax increases are avoided. Lindner had accused the SPD and the Greens of having “no common understanding of the realities of financial policy”.

Dobrindt criticized that it was not possible to foresee when a draft budget could be expected. “Obviously the next major conflict is looming within the dispute traffic light.” Lindner is “a household juggler who constantly throws new balls into the air: with core households, shadow households, special assets and other air bookings”. When it comes to the traffic light budget, “there is no black zero in sight. The budget is more like a black hole.” The goal of a balanced federal budget is usually referred to as “black zero”.

dpa