Lindner defends budget cuts before releasing tax revenue projections.
Germany's Finance Minister, Christian Lindner, has been urging government departments to watch their spending closely for some time. Critics question this approach, but Lindner remains firm. As he prepares to announce the state of tax revenue, he provides some insight into his perspective.
Just before the disclosure of the tax revenue forecast, Lindner reiterated his commitment to financial restraint. "Our state doesn't have a revenue issue. Our issue is with spending. We're allocating resources to a tremendous number of global projects, even though our country's security and the modernization of the Bundeswehr deserve our primary focus," he told the Funke Mediengruppe media group. "We also have a welfare state that discourages work and makes it easier for people to turn down job offers," he added.
Lindner is scheduled to reveal tax revenue projections for the federal, state, and local governments at 3 p.m. on Thursday. These estimates are essential for framing conversations about the 2025 federal budget. He also firmly rejected any abundance in budget limits, such as for defense spending.
"Through the 100 billion [Bundeswehr funding] program, I've shown that I can think creatively and do what's needed," Lindner stated, citing his innovative approach to military financing. "The financial stability of the state is also a matter of security. We can't keep amassing debt for the Bundeswehr over the next few decades, as the interest would overwhelm us," he clarified.
Lindner is also optimistic about future tax incentives. "We eased tax burdens for taxpayers with the Inflation Compensation Act in 2021," he said. "This will continue in 2025-2026 for wage and income tax." He assured that moving away from tax classes III and V would not result in increased taxation.
"Numerous calculations circulating online aim to frighten people. Nobody will have less net income," Lindner stated, referring to the agreement to replace the factor system of tax class 4 with the abolished tax classes 3 and 5. "With the current tax classes 3 and 5, the spouse with the lower income pays a disproportionately high tax," he explained. In the new system, the tax advantage of married couples splitting income would be distributed equally between partners.
References
- Federal Tax Advisor, No. 29/2022 (PDF)
- func.media (Live)
- Die Zeit (Full article)
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Following his call for fiscal prudence, Christian Lindner emphasized his budget policy during a discussion with the Funke Mediengruppe, stating, "Our issue is not a revenue problem, but rather excessive spending on global projects, welfare, and other areas that should be prioritized differently." Furthermore, as the Federal Ministry of Finance, Lindner remains committed to strictly adhering to budget limits, particularly for defense spending.
Source: www.ntv.de
