Prospective Chancellor contender Merz advocates for incremental tax reductions.
The Union's potential chancellor, Merz, consistently emphasizes the need for business tax reductions. He assures this if he becomes chancellor, but clarifies it'll be in stages. However, Merz aims to secure victory against Chancellor Scholz over just this pledge, but with an additional selling point.
With minimal fiscal space at the federal level, Merz acknowledges the challenge in delivering major tax reliefs. In an interview with Süddeutsche Zeitung (SZ), he explained: "We're not announcing drastic tax cuts."
Rather, Merz focuses on incremental, multi-phase tax reliefs for businesses. He intends to propose a business tax reform with several stages. "We will propose concrete measures for a corporate tax reform that could be rolled out in stages." Predictability and stability are crucial for businesses, he emphasized. "If we announce our agenda at the commencement of the legislative period, then the reduction in tax rates is significant, but what's more vital is stability and consistency for businesses. We aim to present a schedule for hardworking individuals, that is, those who make it a point to wake up and complete their tasks every day."
In the lead-up to the federal elections, Merz aims to distinguish himself from Scholz, not just in terms of policy but also personally. "My life's path has been distinct from Mr. Scholz's. I didn't choose a political career after a brief stint, to be a lifelong politician," Merz told SZ. If accused by Scholz of lacking government experience, Merz would retort: "Alright, and the public, I believe, might not desire more of your, Mr. Scholz, political experience."
Merz stresses his economic background. "I've lived a long political life and a long professional life. I've never worked as a lobbyist. I've served two large American companies in Germany and have extensive experience with medium-sized entities. Anyone who has only dabbled in politics lacks a fundamental aspect of life experience."
Merz's focus on incremental tax reliefs for businesses may face criticism as not being drastic enough, given the Union's rhetoric of significant tax cuts. Despite this, Merz emphasizes that the key to business success lies in predictability and consistency, rather than immediate tax rate reductions.
Regardless of Scholz's accusations about Merz's lack of government experience, Merz emphasizes his strong economic background, gained through work with both large and medium-sized companies, stressing that a diverse life experience is crucial for effective leadership.
