Budget and growth package - Kretschmann: Traffic light agreement costs state half a billion
The agreement of the traffic light coalition on a budget for 2025 and a growth package has significant implications for the tax revenues of the states, according to the view of the Baden-Württemberg state government. This agreement means half a billion euros in tax losses per year for Baden-Württemberg, stated Minister-President Winfried Kretschmann (Greens) in Stuttgart.
However, the package of the federal government is right, Kretschmann added. "I don't want to question that it's necessary to make the Federal Republic more tax-attractive in important areas," Kretschmann said. The question is, what dynamics will this now release. With the package, people should also be brought faster into employment. "That can certainly have tax implications as well."
Federal Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens), and Finance Minister Christian Lindner (FDP) had put an end to the budget dispute that had been simmering for months in the night from Thursday to Friday and agreed on key points for the federal budget 2025. In addition, the coalition leaders agreed on a growth package, which includes reliefs for companies among other things.
- The impact of the traffic light coalition's budget agreement and growth package on the finances of various Federal states is a topic of interest.
- In Baden-Württemberg, specifically, the household budget may be affected by half a billion euros in annual tax losses due to this agreement, as mentioned by Winfried Kretschmann.
- Despite the potential financial implications for the state of Baden-Württemberg, Kretschmann acknowledges the necessity of the Federal Government's growth package for enhancing tax competitiveness in crucial sectors.
- The Federal Government's growth package, which includes corporate relief and employment incentives, could also have subsequent tax consequences for the different Federal states.
