Tax Cuts To Boost Eurozone Economies

October 12, 2012 Taxation in Germany

Angela MerkelBERLIN – Germany is looking to help revive growth of the national and European economy through a series of tax cuts.

In  a joint press conference held by the Chancellor of Germany Angela Merkel and the Prime Minister of Hungary Viktor Orban in Berlin on October 11th, the German leader suggested that her government will continue develop economic policies which will allow the country to reduce the rate of personal income taxing the near future.

The Chancellor explained that any cuts implemented would develop and expand the country’s economic growth, which is currently expected to only reach 1 percent in 2013.

According to Angela Merkel, tax cuts in Germany would also help support “the collapsing economies in some Eurozone countries”, as the reduced income taxes will spur higher rates of consumption and “…would have the advantage that we [Germany] would naturally be able to buy imports from other countries in the European Union”.

In May this year the upper house of parliament of Germany already the plan of reducing personal income taxes by EUR 6.1 billion, as the move was deemed to be financially irresponsible at the time.

However, voicing her support to the idea of cutting taxes, the Chancellor “…total public deficit is today comfortably under three percent, it is our job to do something for the recovery of Europe’s economy.”

Photo by Neo_II