Finance Minister Christian Lindner considers a reduction in income tax to be appropriate in view of the current economic situation.

This emerges from an internal paper from his ministry, which is available to the German Press Agency and was first reported by the “FAZ”.

The FDP politician had asked his experts for suggestions on how the economic recovery could be accelerated and Germany’s competitiveness strengthened. “In addition to the measures mentioned, a general reduction in the tariff for income and corporation tax is also an option,” the paper says. Alternatively, the complete abolition of the solidarity surcharge is conceivable.

In the paper, the Ministry of Finance calls for a turning point in financial and economic policy. Recently, high energy prices and inflation rates, deficits in modernization and the lack of skilled workers have weakened Germany as a business location. Better incentives for investments, a stronger supply of skilled workers and the reduction of bureaucratic obstacles are therefore necessary.

In addition to tax measures such as higher research funding and an investment premium (“Super-Afa”), more flexible working hours and continued operation of the nuclear power plants beyond April 2023 are also “technically” advocated. On the other hand, the paper clearly rejects higher taxes for the rich through “energy solos”, a higher top tax rate or the introduction of a wealth tax.