Household - Klingbeil: tax increases to be put to the test
Following the Karlsruhe budget ruling, SPD leader Lars Klingbeil is questioning agreements made in the coalition agreement. Klingbeil told the German Press Agency in Berlin that the SPD, Greens and FDP had agreed not to increase taxes.
In the coalition agreement, it was agreed that investments in the future of the country should be financed with money from the corona pot. "It was derived from this that we would return to the normal situation with the debt brake and that there would be no need for a tax increase," explained Klingbeil. Now the first of these has been broken by the ruling of the Federal Constitutional Court. "For us as the SPD, this of course also means that we are now talking about the other two things."
Difficult talks
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. While Finance Minister Christian Lindner (FDP) insists on savings, the SPD and Greens also want to increase revenue through tax increases and loans.
Klingbeil held out the prospect of difficult talks. These are currently taking place in a three-way round with Chancellor Olaf Scholz (SPD), Vice-Chancellor Robert Habeck (Greens) and Lindner. First of all, the three want to clarify how the budget for the coming year can be set up.
Klingbeil argued in favor of suspending the debt brake, as the federal government has also initiated for 2023. The Basic Law allows this in the event of natural disasters or extraordinary emergencies.
"The federal government must make savings. But in the end, I am of the firm political conviction that We have to declare an emergency for 2024 because I don't want to get into a situation where we play off Ukraine aid against climate investment," Klingbeil emphasized. "I want us to remain active supporters of Ukraine, and I hope that this is a consensus among the democratic parties."
SPD party conference in Berlin
The opposition CDU/CSU currently sees no solid justification for the decision on an emergency situation for 2024. Should the traffic light coalition nevertheless suspend the debt brake, the CDU/CSU could once again take the matter to the Federal Constitutional Court.
Klingbeil expects the debate on a reform of the debt brake to gain further momentum following the budget decision. "I believe that there will still be a lot of movement on the part of the CDU/CSU when the state premiers, mayors and district councils realize how the Federal Constitutional Court ruling will ensure that there is less money," he said.
At its party conference this coming weekend in Berlin, the SPD intends to adopt a key motion that provides for a relaxation of the debt brake and tax increases for the super-rich. In this way, the Social Democrats want to enable more money to flow into infrastructure and the jobs of the future. "This is not a direct reaction to the Federal Constitutional Court, it is our social democratic stance, but it is exactly the right one right now," said Klingbeil.
Lesen Sie auch:
- Report: USA supplied Israel with bunker buster bombs
- Energy companies warn of delay in power plant construction
The Federal Constitutional Court's budget judgment has put the agreement on tax increases made by the SPD, Greens, and FDP in the coalition agreement to the test. Klingbeil stated that the SPD had agreed not to increase taxes, and the debt brake would be returned to its normal state with investments from the Coronavirus pot. The ruling has created a financial gap worth billions in the federal government's budget for 2024 and in funds for modernizing the economy and climate protection.
Christian Lindner, the Finance Minister of the FDP, insists on savings, while the SPD and Greens advocate for tax increases and loans. Difficult talks are underway in a three-way round with Chancellor Olaf Scholz, Vice-Chancellor Robert Habeck, and Lindner to determine how the budget for the coming year can be set up. Klingbeil advocates for suspending the debt brake, arguing that the federal government must make savings and declare an emergency for 2024 to avoid prioritizing Ukraine aid over climate investment.
The opposition CDU/CSU sees no justification for declaring an emergency situation for 2024 and could take the matter to the Federal Constitutional Court should the traffic light coalition decide to suspend the debt brake. The SPD's party conference in Berlin aims to adopt a key motion that provides for a relaxation of the debt brake and tax increases for the super-rich, enabling more money to flow into infrastructure and jobs of the future.
The Federal Government is grappling with a potential future tax increase, as its decisions face scrutiny from various political parties and institutions such as the Federal Constitutional Court.
Source: www.stern.de
