Following the latest tax forecast, Mathias Middelberg, vice chairman of the CDU/CSU parliamentary group, stressed the urgent need for progress on income tax reform. Middelberg told the newspapers of Funke-Mediengruppe that the sobering results of the tax estimate increase the urgency for Germany to regain a growth course quickly. He emphasized that a tax reform designed to ease the burden on both employees and businesses is a key structural element required for this transition.
Furthermore, Middelberg argued that the reform was not only necessary now but also financially attainable. According to his view, there are definite opportunities for budget cuts. He pointed specifically to the federal financial aid, which has risen from nearly 8 billion to 60 billion euros over the last seven years, suggesting that certain areas, such as international climate protection measures, might need reassessment if they are not factored into Germany’s domestic CO2 budget.
The tax estimate, previously presented on Thursday, has heightened pressure on the federal budget. The latest projections indicate that the federal budget will face a shortfall of 10.1 billion euros in predicted revenue for 2027 alone.
