The German left reopens the debate on the ISF
Inspired by the French Socialists, the German Social Democrats just put a swing to the left. The SPD has decided to revive the wealth tax. Four German states, ruled by the great party of the Left, have announced their intention to submit before the summer in the Bundesrat, the upper house of Parliament, a bill for the reintroduction of a "Vermögensteuer" (ISF) modernized.
"The SPD has never hidden its emphasis on social justice. We can not simply cut down spending to meet the golden rule. That is why we are determined to pave the way for the reintroduction of the wealth tax, "said Carsten Kühl (SPD), Minister of Finance of Rhineland-Palatinate. Led by the SPD, Rhineland-Palatinate, North Rhine-Westphalia, Baden-Wuerttemberg and Hamburg will present, before the summer break, their text in the Bundesrat, which are represented the German regional states.
Their proposal includes a tax rate of 1% for individuals and businesses. This should apply to people whose heritage is over two million and save the middle class homeowners. Calculated by the SPD, this FSI could relate to the federal state between 8 and 10 billion euros per year. However the text is unlikely to be adopted in the Bundesrat, where Angela Merkel has lost its majority, but where the SPD does not have an absolute majority cheap business cards. And it would still be ratified by the Bundestag, the lower house of parliament, dominated by the center-right coalition of Chancellor.
Elections
Whatever. For the SPD it is to lay the groundwork for the legislative elections of 2013. The German Social Democrats had considered the proposal outrageous tax to 75% of the very rich made by Francois Hollande. The reluctance of the socialist candidate against the golden rule also raise the misunderstanding of the German left. But she sees the ISF a good opportunity to stand out from the Chancellor on matters of taxation.
Across the Rhine, the income tax is capped at 42% with a special 45% said "tax the rich", for those whose monthly income exceeds the 250,731 euros. The Constitutional Court in Karlsruhe ruled in 1995 that the income tax could not exceed 50%, whereas beyond this was a confiscatory measure contrary to the fundamental law. And the federal government, which has never carried out the modernization demanded by the Court in Karlsruhe, has stopped collecting the tax on capital in 1997.
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Published on 22 Apr 2012 in business, economics, international, life, opinions, by admin
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