FDP rejects tax increases
In order to plug gaps in the budget, the government could cut spending or increase revenue. While SPD leader Klingbeil is toying with the idea of tax increases, the FDP has rejected the idea. On the contrary, the middle class should be given greater relief, says FDP deputy leader Vogel.
In the budget crisis, the FDP has rejected tax increases. FDP deputy chairman Johannes Vogel said: "Tax increases are not only rightly ruled out in the coalition agreement, they would also be exactly wrong for our competitiveness - because Germany is already a high-tax country. Instead, we must provide even greater relief for the middle class and companies, as agreed." Following the Karlsruhe budget ruling, SPD leader Lars Klingbeil had questioned agreements made in the coalition agreement. The decision by the SPD, Greens and FDP not to increase taxes was under scrutiny, Klingbeil said.
The traffic light coalition is struggling to decide how much money the federal government can spend in the coming year. This is because the Karlsruhe ruling has torn gaps worth billions in the budget for 2024 as well as in a fund for modernizing the economy and for climate protection.
"Emergency situation for 2024 not legally possible"
Vogel, First Parliamentary Secretary of the FDP parliamentary group, also spoke out against suspending the debt brake again next year due to an emergency situation - as many in the SPD are demanding. Vogel said that this does not seem legally possible, at the latest after the statements of the Federal Constitutional Court.
"But it would also be politically wrong - just like a fundamental weakening of the debt brake, as the majority of the Union Minister Presidents want. The debt brake has just been strengthened by the ruling from Karlsruhe." Weakening the debt brake in response to the ruling or increasing taxes is out of the question for the Free Democrats. Vogel emphasized: "The state does not have a revenue problem, but it must now prioritize more clearly, realize the need for reform and use the resources at its disposal accurately. We must and can make savings and pursue more effective policies with less money."
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Despite the financial challenges, the FDP remains firm in their rejection of tax increases, stating that this would be detrimental to Germany's competitiveness as a high-tax country. Klingbeil, the SPD leader, has questioned the stance on taxes following the Karlsruhe budget ruling, but the coalition of SPD, Greens, and FDP has remained committed to not increasing taxes. In the context of the traffic light coalition's budgetary discussions, the FDP maintains that the state should prioritize more effectively, reform where necessary, and use resources accurately, rather than resort to tax increases or weakening the debt brake.
Source: www.ntv.de
