Income Tax

Germany needs a taxation system that satisfies the needs of both its citizens and its companies. In times of economic change, tax reforms remain on the agenda. For companies a taxation system should be neutral in terms of its financing, simple, clear and practicable. In addition, investments should not be channelled into tax loopholes, but into areas where the highest real returns are to be made. A tax system must offer strong incentives to invest in labour force training and to reduce illegal moonlighting. As long as no comprehensive tax reform succeeds, there will be enough leversto ease the load on citizens and to foster greater acceptance of the system. These include the abolition of cold progression and the solidarity surcharge.