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The CDU and the solos : A big step?

Carsten Linnemann is one of the losers of the historic CDU-party tags from Hamburg. The head of the middle watch Association of the party had as its candidate,

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The CDU and the solos : A big step?

Carsten Linnemann is one of the losers of the historic CDU-party tags from Hamburg. The head of the middle watch Association of the party had as its candidate, Friedrich Merz lost. What Linnemann and his colleagues from the economic wing hurts: It was so damn tight. It was so close to the victory. From the CDU, a party would become in the coming years. But Linnemann, none of that sulking in the corner. So flight and supple as he moved a few weeks ago, the Position, as Merz announced his candidacy – because he is behind Jens Spahn, quickly Linnemann from interpreted the Congress as a Quasi-Triumph of wing. Because the won the "solos".
"A big step towards more credibility in the policy" – so Linnemann fluffed up the fact that the delegates with a clear majority, agreed to a request for the complete abolition of the solidarity surcharge through 2021. "We promise for a quarter of a century, that the solos will soon be lost, but put off the taxpayers again," said Linnemann. And brought to the vote a victory for the economic wing of the Supplement to income tax on the government's agenda. And because the result was close, and the new party boss Annegret Kramp-Karrenbauer, the agent must state Association, will remain the icon theme.

2021 should be final, but not complete

The abolition of the Solis is in the coalition agreement, the date of 2021, but not the word "complete". It was decided with the SPD is only a first step, in the case of the short-prior to the next regular Federal election, 90 percent of all Soli-payers of the surcharge are to be freed. The discharge volume (and thus the loss of revenue in the Federal budget) is estimated at ten billion euros. However, this is only about half of the revenues, which are expected in three years, the solidarity surcharge. Ten percent of the payer is able to meet the other half of the reason alone, because the surcharge is due when the Corporation tax for companies.
And for this reason is nerves the medium of Association with the topic in the coalition. Even if in the Union, some of the important votes, I should be careful. For example, the CDU budget politician Eckhardt Rehberg has warned recently, with a view to the Budget of its people before that of the Soli-agreement with the SPD of fooling around. The money would just be missing, and the Grand coalition has some additional expenditure. Which is why the social Democrats do not think of that, only a German reunification. The Parliamentary Secretary of the parliamentary group in the Bundestag, Carsten Schneider, criticized the decision. The CDU wool relieve the "top earners". That's not going to happen with the SPD. "We use this money for investment in social cohesion."

A topic in the inventory?

However, 2021 is not the only relevant date in the debate. Because in the coalition agreement it is, way in the back on page 176, that, to the "mid-term" stock of the Agreed and Implemented. You want to talk, so by the end of 2019 or early 2020, even about whether or not "due to current developments, new projects must be agreed". Then the economy could come from a wing of the Union, with its tax relief for companies and a complete Soli-abolition as a coalition demand target. For example, because the economic situation deteriorate any more.
However, the decision of Saturday is in the CDU-still a sentence: "we maintain our objective of a balanced budget without new debts.“ Compliance with the black Zero is a precondition. So far, Finance Minister Olaf Scholz (SPD) plans up to the end of the term with a balanced budget. The Surpluses at the beginning, but. The thing is so close.

DIW Economist: a high-earner

The Economist Stefan Bach of the German Institute for economic research relieve has currently expects that, in the past few years, since about the turn of the Millennium, "a Better and High earning" considerably relieved had been - in contrast to the Small - and medium-income earners. Simply by the reduction of the General top tax rate from 53 to 42 per cent (or 45 per cent, in the case of particularly high income). Since then, business taxes have been reduced. The introduction of the final withholding tax on capital income for top earners a tax cut. And the Reform of the inheritance, tax on that company heirs continue to come around. Bach's conclusion: "Overall, a lot of the indications are to relieve pressure on households with high and very high income in income tax." His proposal: The solos could be integrated as of 2021, for the remaining taxpayers in the ordinary income tax. Then he would be abolished, but he would be paid more of the better earners. The coalition's plans (no solos more for 90 percent of the payer), as of 2021, all Taxpayers with a taxable income of more than 77000 EUR (after deduction of the allowances) to continue the contract shell out.

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