FDP leader Wolfgang Kubicki has sharply criticized the Federal Government’s planned tax reform. Speaking to the TV channel “Welt,” he argued that the question of how the reforms could be financially covered cannot be answered solely through the tax system; instead, cuts in government spending must also be implemented.
Kubicki expressed strong disapproval of the planned subsidies, stating that no one could explain why the government intends to distribute 117 billion euros in subsidies. He claimed, “The state first takes the money away from people and then distributes it sector by sector. I can assure you that 80 percent of that makes absolutely no economic sense, yet they are still promised because people are accustomed to receiving money from the state.”
Furthermore, he stressed the need to lower overall tax levels and noted that the economy still lacks essential growth impulses. According to Kubicki, bureaucracy heavily burdens companies. He lamented the excessive red tape, asking rhetorically who actually reads the sustainability reports companies are now required to produce-“Nobody does. They are designed so that companies can assure themselves that they are conducting economically sustainable practices.”
He added that most companies are already operating sustainably because they are cost-conscious and focus on minimizing costs and improving efficiency. “So, we have bureaucrats who cannot imagine how the economy works,” Kubicki concluded, arguing that the regulatory burden is constantly increasing rather than decreasing, and a massive reduction in bureaucracy is necessary.
