Tags: germany | budget surplus | no plans | cut taxes

Germany Has Budget Surplus, No Plans to Cut Taxes

Germany Has Budget Surplus, No Plans to Cut Taxes

German Chancellor Angela Merkel speaks during a press conference with the new Polish Prime Minister at the Chancellery on February 16, 2018 in Berlin, Germany. Morawiecki is on his first official visit to Berlin since taking office. (Photo by Michele Tantussi/Getty Images)

By    |   Saturday, 17 February 2018 06:37 PM

Germany isn’t considering tax cuts despite unprecedented prosperity, while the U.S. two months ago passed sweeping tax reform that adds at least $1 trillion to the debt over the next decade, The Wall Street Journal reports.

Germany’s outgoing government posted a budget surplus of $6.35 billion in 2017, but the country’s Christian Democratic Union – which Chancellor Angela Merkel belongs to – and the Social Democratic Party (SPD), plan to distribute more money to state pensions and benefit increases, according to a Fox Business report.

Merkel in September won a fourth term as chancellor and her government is set to come into office in March if the SPD approves talks with her conservatives on the basis of a joint policy outline which includes one small tax cut worth $12.4 billion dollars over the next four years for low earners. The outline also includes spending close to $62 billion on child care, education, infrastructure and welfare benefits, according to the WSJ.

“It is sort of a through-the-looking-glass world,” John Kornblum, a former U.S. ambassador to Germany, told the WSJ of Germany’s approach. “Traditionally Germans have been in favor of hoarding resources rather than lowering government expenditures.”

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Germany isn't considering tax cuts despite unprecedented prosperity, while the U.S. two months ago passed sweeping tax reform that adds at least $1 trillion to the debt over the next decade, The Wall Street Journal reports.Germany's outgoing government posted a budget...
germany, budget surplus, no plans, cut taxes
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Saturday, 17 February 2018 06:37 PM
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