Merz proposes a phased reduction in tax rates.
The Union's potential chancellor candidate, Merz, repeatedly stresses the need for business tax reductions. He assures these will materialize under his leadership, but in multiple phases, he clarifies. However, he isn't relying solely on this pledge to clinch the election against Chancellor Scholz, but on another factor.
Given the fiscal constraints at the national level, the Union's chancellor candidate, Friedrich Merz, sees no scope for substantial tax reductions. "We're not promoting drastic tax cuts," Merz told the Süddeutsche Zeitung (SZ) in an interview, when asked about financing broad-based tax relief.
Instead, Merz advocates for lesser, incremental tax relief for businesses. "We will propose practical measures for a corporate tax reform that could unfold in multiple stages," he said. What businesses need most is predictability. "If we state at the outset of the legislative period: This is our agenda for the next four years, then the reduction in tax rates is important, but even more crucial is the assurance and predictability for businesses. We aim for an agenda that benefits the hardworking, which means those who rise every morning and contribute to their jobs."
In the run-up to the federal election, Merz seeks to distinguish himself from the incumbent Olaf Scholz not just on policy grounds but also personally. "I've lived my life differently than Mr. Scholz. I didn't instantly opt for a lifelong career in politics following a brief stint in the profession," Merz told SZ. If Scholz levies criticisms against him for lacking government experience, Merz would allegedly respond: "Alright, and the experience with you, Mr. Scholz, a significant part of the population likely doesn't desire anymore."
Merz underscores his business experience. "I've had a prolonged political career, but I've also had a lengthy professional career. I've never engaged in lobbying. I've worked for two major American firms in Germany and had extensive dealings with medium-sized enterprises. Anyone who has only ever been in politics lacks this aspect of life experience."
The Union's chancellor candidate, Merz, believes that the Commission should focus on proposing practical measures for a corporate tax reform, which could be implemented in multiple stages. Despite fiscal constraints, The Commission under Merz's leadership does not intend to promote drastic tax cuts, but rather emphasizes the importance of predictability for businesses.
