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MIL OSI Translation. Region: Germany / Deutschland –

Source: CDU CSU

Many Thanks. – Mister President! Dear Colleagues! Mr Schrodi, I think it’s a good thing that I also say something about it; because we should add a few points.

As we do every year, we are discussing an annual tax law with different changes in the law in the area of ​​income taxes, sales tax and numerous other laws – our colleague Güntzler was able to do that – and we are thus adapting laws according to the case law of the Federal Fiscal Court, the ECJ, but also for other reasons. Corrections that are necessary also fit into such an annual tax law.

This year it is also important that we keep an eye on the challenges of the corona pandemic and also discuss which tax priorities we are setting – for more growth, for more competitiveness of the German economy. Above all, we want to provide investment incentives.

That is why we are tackling the expansion of the investment allowance. Up until now, companies with business assets of EUR 235,000 or a profit with an income statement of EUR 100,000 and in agriculture with an economic value of EUR 125,000 could pack 40 percent of future investments into an investment deduction. In the first step, this leads to a tax reduction and thus frees up funds for investments. That’s the difference between us: you on the left want to take the money away first; we want the money for investments to stay in companies.

Therefore, the expansion of the investment deduction amount to 50 percent with a uniform limit of 150,000 euros profit is basically very good. Incidentally, I believe that we have to add something more, that we have to increase the profit limit from 150,000 to 250,000 euros. This would enable us to steer further investments in the country. That would give us more money in the company, and we need that at this time.

(Applause from the CDU / CSU)

If we want further investment and growth – we also need growth in order to be able to shoulder the pandemic at all – then we must also focus on the taxation of partnerships. Profits that remain in the company are currently taxed at up to 45 percent. We are thus over 20 percentage points higher than our European neighbors. That is why we want to jointly tackle Section 34a of the Income Tax Act (EStG), i.e. the preferential retention rate, so that more money remains in the company during this time. This is what I advocate – as well as many points relating to the modernization of corporate taxation.

Dear colleagues, when it comes to relieving employees, it is also important to us that we relieve the high financial challenges and burdens of the pandemic. That is why we as the CSU have proposed a home office flat rate of 600 euros per year. I know that there is still a lot of discussion here, both within our group and with our coalition partner. But I think it would be the right signal to say thank you to the employees, to those who have worked from home, who have done homeschooling, who have had additional burdens on their families, and to give them the relief that is necessary. So here I sincerely ask for your support so that we can enforce this.

(Applause from the CDU / CSU and Deputy Markus Herbrand [FDP])

Dear colleagues, I would like to make one final point. An annual tax law – it is good that the Federal Finance Minister is there – also serves to clear up ambiguities. In the last annual tax law, we were able to strengthen the € 44 rule. So: In addition to wages, the employer can provide the employee with wages of 44 euros in kind; that is tax and social security free. In the last annual tax law, we introduced digital products, so-called voucher cards, open-loop cards. These cards do not have a cash payout function, but rather only determine wages in kind – a digital solution in digital times.

Now came a draft of a letter from the Federal Ministry of Finance in which these cards have been removed from the regulation. This is actually a failure to implement the will to legislate. That’s why I asked the Federal Minister about it in a government survey. He has promised us to clarify this again in the current annual tax law. Incidentally, there are 6.5 million employees with low and medium incomes who have such cards. I can tell you: I don’t think that we want to take away the 44 euros a month from these 6.5 million employees. I think we agree on that. We will tackle and implement this in the Annual Tax Act.

(Applause from the CDU / CSU)

Dear colleagues, I look forward to further discussions. There is still a lot to be done, for example with the adjustment of the inheritance tax, with retention periods due to the pandemic, with short-time work benefits and other things.

(Fabio De Masi [DIE LINKE]: Cum / Ex!)

– Cum / Ex, yes; Statute of limitations and everything else. – I look forward to the discussion. Let’s tackle it together and see that we can make a good annual tax law out of it!

Thank you very much.

(Applause from the CDU / CSU)


EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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