Growth Initiative - Craftsmen against tax advantages for foreign specialists
The craft industry views planned tax incentives for foreign specialists critically. Holger Schwannecke, Secretary General of the Central Association of German Crafts, told the German Press Agency that the labor factor is significantly overburdened in Germany, which is particularly evident in the highest social contributions and taxes compared to the world market. "It's finally time for employees to earn more net from gross. However, from the craft industry's perspective, it's not productive to single out specific groups for this."
Instead, relief is needed in the broad sense. "To achieve this, overdue fundamental reforms must be initiated. Unfortunately, this was once again missed out on," Schwannecke said, looking at the economic growth package planned by the Federal Government.
Federal Minister of Economics Robert Habeck defended planned tax incentives for foreign specialists with a view to the international competitive situation. With this measure, one could close a "large skills gap," Habeck said at the beginning of his summer trip in Stuttgart on Monday. "We see that other European countries are granting such tax exemptions for specialists when they come to the country."
According to the "Growth Initiative" of the Federal Government, newly recruited specialists can be tax-exempt from the net wage by 30%, 20%, and 10% in the first three years. For this tax exemption, a lower and upper limit for the gross wage will be defined. After five years, the effect of this measure should be examined. The plans were also criticized by trade unions.
- The criticisms towards the tax incentives for foreign specialists extend to the craft industry, as highlighted by Holger Schwannecke from the Central Association of German Crafts in Berlin.
- Schwannecke argued that the existing labor burden and high taxes in Germany, compared to the world market, make it challenging for domestic craftsmanship to thrive with such incentives.
- An expert from the craft industry shared the belief that it would be more productive to implement reforms benefiting all employees rather than focusing on specific groups.
- The Federal Government's planned economic growth package failed toinclude comprehensive reforms to alleviate the burden on employees, according to Schwannecke.
- The Federal Minister of Economics, Robert Habeck, justified the proposed tax incentives for foreign specialists by pointing to the international competitive situation and the need to close a skills gap.
- Critics, including trade unions, raised concerns over the Growth Initiative's tax exemption plan for newly recruited specialists, considering its potential impact on domestic wages and household finances in Germany.
