Germany proposes to eliminate the solidarity tax
The solidarity tax was paid since 1991 to the citizens of the west to defray the costs of reunification, it is expected that from 2021 it will stop being canceled
The German government decided to eliminate the solidarity tax, a contribution that came into effect following the fall of the wall with the idea of defraying the high costs of reunification. The tax so far represented 5.5% of income tax and corporate tax.
For the State, the measure involves dispensing with 18.9 billion euros annually, in accordance with the budgets of the last three years.
The sum of money raised did not materialize in improvements in infrastructure or in the public schools of the states of the former East German, but the sum of assets was going to directly fatten the federal budget.
Without a doubt, the lack of clear destiny had made this tax increasingly unpopular, especially in the western states of Germany and its elimination was part of the electoral programs of large political parties.
The project approved on Wednesday in the Council of Ministers states that as of 2021, 90% of taxpayers stop paying this tax. However, for the sections with greater purchasing power, it will continue to be in force.
L. Sáenz
Source: El Mundo
