Germans don’t want tax cuts

Economy Nilgun Salim
http://stocknewsusa.com/wp-content/uploads/2016/09/Euro_coins_and_banknotes-1024x768.jpg

The biggest economic power in Europe also has the biggest taxes in the world. Most recent reports show that Germans don’t want lower taxes. On the contrary, they suggest that public money should be used to invest, according to Wall Street Journal.

For over a decade, Germany excessively promotes the economic education in Europe without taking into consideration their eye-popping taxes. The German Finance Minister Wolfgang Schaeuble hinted to a possibility of introducing lower taxes starting from 2018. A suspicious choice, considering the fact that the US and other European governments begged Germany for years to invest and spend more.

There’s only one problem: most Germans will not tax cuts. In a survey by Infratest Dimap conducted last month, 58% of participants said the government should spend tax revenues on investments, and 22% said that the amounts should be used for debt reduction. Only 16% said they would want their money back in the form of tax cuts. Such a lack of interest contrasts with Germany’s position as one of the most heavily taxed economies in the world, a burden which even increased in recent years. However, polling agencies say that this attitude is not surprising since about half of Germans, including students, pensioners and unemployed are living on state aid.

The U.S. government criticized the German government for their huge redundancy accounts. In the last year, Germany registered a $250 billion surplus. According to Ifo, the eye-popping economic surplus will reach 8.9% of the total economic output this year. Some economists say that’s Schaeuble ‘modest’ proposal can be considered a first step.