German plan to cut corporate taxes slowed
A plan to cut Germany’s corporate taxes was slowed down on Friday on Green party hesitations concerning the bill. The chair of Germany’s parliamentary finance committee, a Green party member, said that the cut was “inadequately financed.”
The bill, which would cut the federal corporate tax from 25 to 19 percent and the total corporate taxation, including municipal taxes, from 38.7 to 32.7 percent, would cost around €6 billion (£4.1 billion, $7.5 billion), has been the subject of controversy ever since it was first introduced.
Much of the criticism of the bill has revolved around its reliance on credits for its financing considering the current lack of public funds in the country.
The Social Democratic Party also fears that the bill could be seen as too friendly to business and would be happy to see it simply “fade away” before the election chancellor Gerhard Schröder has called for September.