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Economic development: economic wise men-chief calls for solidarity From

The chief of the economic, Schmidt, has called for a rapid abolition of the solidarity surcharge. This would facilitate investment. At the same time warned of an increase in the minimum wage to twelve Euro.

the head of The "economic wise men", Christoph Schmidt, argued in view of international tax competition for a complete abolition of the solidarity surcharge. "In contrast to the previously planned partial abolition would ease the strain on entrepreneurial activity significantly," said the Chairman of the expert Council for the assessment of the overall economic development of the "Rheinische Post". Already now, Germany as a location for investment was "less attractive than it could be the case".

When the solidarity surcharge in the Union and the SPD plan for 2021, a relief to tens of billions of euros, intended to exempt 90 percent of the Soli-payer. In the short term, the President of the RWI - Leibniz Institute for economic research expects a "relatively subdued pace of growth" of the economy "by about one and a half percent". But he sees great risks in particular in the case of a "disorderly" departure of Britain from the European Union or a renewed crisis in the Euro area. A responsible economic policy must be prepared at the end of the boom.

Last, had spoken to the Minister of labour of healing for a minimum wage of twelve dollars.

To high minimum wage in the downturn, dangerous

In this context, Schmidt objected to the proposal of the Finance Minister, Olaf Scholz, Minister of labour, Hubertus Heil, the minimum wage to twelve euros to raise. In 2019, the minimum wage of 8,84 should increase to 9,19 euros per hour. It was not advisable "to raise the minimum wage to a level that would worsen in a downturn, then, inevitably increasing problems on the labour market dramatically," said Schmidt. "The minimum wage due to a sluggish economy, to take back, would never happen."

The General wage increase in Schmidt welcomed. "In view of the capacity utilisation of the economy that is not likely to endanger the stability of the employment," he said.

Kahrs against Soli-abolition

In the debate over the solidarity surcharge, the chief householder of the SPD parliamentary group, Johannes Kahrs said in the meantime, for a full Soli-abolition. "Why the SPD should better relieve Verdi, not obvious to me," said Kahrs, the "Handelsblatt". It is the coalition agreement, which had been decided as the basis for joint cooperation. A discharge of small-and medium-income had been on a date.

a full Out of the solos would also lack money for future investments, education and infrastructure, said Kahrs. "The Federal budget is currently without new borrowing," said the SPD politician. "Want to give up the Union, now?"

Cabinet higher minimum wage, 31.10.2018 Union politician decides to call for immediate tax cuts, 28.08.2018 Atlas |Germany |Berlin

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