The Parliamentary Circle for Small and Medium-Sized Enterprises (PKM) of the CDU/CSU parliamentary group has drawn a line on compromises in the tax reform in an internal paper. The body includes 166 of the 208 Union MPs and is considered an influential lobby group within the parliamentary party. The paper states that willingness to compromise ends where additional tax burdens are discussed, funds for growth measures are misappropriated, or principles of sound fiscal policy are called into question.
Behind the scenes of the coalition, battles are being fought with hard tactics. Union and SPD had vaguely agreed in the coalition agreement to relieve small and medium incomes, while at the same time ruling out tax increases. Financing remains unclear. While the SPD insists on increasing the top tax rate and the wealth tax, the Union rejects any tax increase. New burdens would be poison for the economy, especially for SMEs, according to the Union line.
However, even among the Union’s economic politicians, it is becoming apparent that tax relief must be financed. “One of the projects where it is really about relief is the tax reform,” Steffen Bilger, First Parliamentary Secretary of the CDU, told Zdfheute. It should relieve middle and small incomes. Whether the Union actually draws a red line or moves remains to be seen.
Source: www.zdfheute.de
