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Hey Obama, here's an idea: Germany Lowers Taxes

Unlike the US, Germany takes the right approach to economic stimulus by doing something that will actually work:

German coalition agrees tax cut

http://news.bbc.co.uk/2/hi/europe/8323651.stm


The centre-right coalition is set to take office next week
German Chancellor Angela Merkel's conservatives have sealed a coalition deal with the Free Democrats (FDP) based on major tax cut plans.

The deal between the CDU/CSU and the pro-business FDP paves the way for the coalition to take office next week.

Income taxes will be slashed by 24bn euros ($36bn, #22bn) starting in 2011, according to the coalition agreement.

The parties agreed to unite after the September general election in which the FDP achieved its best-ever result.

They have also announced key cabinet posts.

Marathon talks

The coalition deal came in the early hours of Saturday morning after three weeks of bargaining.

The burden on families has to be lessened, the burden on companies and inheritance tax has to be reformed

Chancellor Angela Merkel

Offering tax relief while balancing the country's ballooning deficit was the main sticking point for the two sides, as Germany struggles with its most severe recession since World War II.

The final tax cut is less than the 35bn euros the FDP sought, but more than the amount Mrs Merkel wanted.

"The burden on families has to be lessened, the burden on companies and inheritance tax has to be reformed," Mrs Merkel was quoted as saying by AFP news agency at the start of a press conference in Berlin.

The partners had already forged compromises on a range of other issues, from healthcare to nuclear energy and foreign policy.

Cabinet shuffle

Mrs Merkel said Wolfgang Schaeuble would move into the role of finance minister after acting as the country's interior minister for the past four years.

FDP leader Guido Westerwelle was named foreign minister.

The party's deputy leader, Rainer Bruederle, is slated to become economy minister, replacing Karl-Theodor zu Guttenberg, who will take over the defence portfolio.

Mr Guttenberg will have the task of overseeing an unpopular mission in Afghanistan and working towards an eventual exit strategy.

The youngest minister in Mrs Merkel's cabinet will be the Vietnam-born Philipp Roesler, 36, who was named as health minister.


Added: Oct-27-2009 Occurred On: Oct-26-2009
By: vicsemprini
In:
Afghanistan, News
Tags: Germany, economic stimulus, tax cuts, recession, financial crisis, Obama, stimulus, government waste
Views: 8192 | Comments: 19 | Votes: 0 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 1
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  • Hahaha.....Germany lowers income taxes on the working class and it works!....no shite. Eight years of Bush who lowered income taxes only for the rich backfired in a HUGE way. Targetted lowering of income taxes does have a positive effect...IF ITS GIVEN TO THE MIDDLE CLASS.

    Posted Oct-27-2009 By 

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    • Also false.

      The Bush cuts went across all tax brackets...as Americans are going to learn when the Obama administration lets them all expire in 2010.

      Posted Oct-27-2009 By 

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    • You're correct in saying Bush tax cuts covered all tax brackets...what fugged it up is that the vast amount of tax relief went to the top 20% earners in the US not the middle class.

      Posted Oct-27-2009 By 

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  • we rule

    america not

    Posted Oct-27-2009 By 

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  • Please do not believe this.
    No one in Germany believes it, too.
    Every tax payer present has to be re-financed.
    And nobody so far answered how this shall happen.

    Posted Oct-27-2009 By 

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    • Re-financed? That's a lie of the Left.

      The point of tax cuts is to stimulate economic growth, which creates more taxable economic activity. You increase tax revenues via tax cuts, particularly if you target it to stimulate capital investment.

      Posted Oct-27-2009 By 

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    • i read somewhere yesterday a group of german millionaires wanted to pay 5 % more tax

      Posted Oct-27-2009 By 

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    • It only works if you give the tax break to the middle class. If you give it to the top 5% you piss away any benefit. The middle-class is the economic engine and if it suffers, as it did under 8 years of Bush, then you have a failing economy.

      Posted Oct-27-2009 By 

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    • Um...the Bush cuts worked. The Bush cuts were across the board.

      Middle class tax cuts are great, but they're not job creators. If you want to stimulate the economy, you have to cut taxes in such a way as to make investment capital available...then you get growth.

      Kennedy did it, and Reagan did it...and it worked...big time.

      The reason for the current crisis in the US has nothing to do with taxes, and everything to do with bad Fed policy, and bad federal regulation.

      Posted Oct-27-2009 By 

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  • Its just a Illusion in germany...they all put on the whole economy crab a smile face on it.
    Its just the beginning right now, the wolrd economy will fall so or so, its just a metter of time.

    Posted Oct-27-2009 By 

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  • it's a shame that things had to get so out of hand before they finally wised up

    Posted Oct-27-2009 By 

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  • Comment of user 'willy_lump' has been deleted by author (after account deletion)!
    • Wrong. Obama increased debt by spending 780 billion on a phony stimulus.

      Tax cuts INCREASE revenue. It's exactly what we need...

      Posted Oct-27-2009 By 

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    • Moron. Bush tax cuts increased revenue to the IRS. The reason why there was a $1 trillion deficit was because of the crazy Bush spending, not because of the tax cuts.

      Posted Oct-27-2009 By 

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    • Nope ....housing prices have risen for the fourth straight month....looks like the stimulus is working.

      Posted Oct-27-2009 By 

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    • That's not economic growth. It's not jobs.

      The economy is still shrinking, and we're still losing jobs.

      Worse, the Feds are gobbling up an increasing share of available capital from the private sector, and can't wait to get their hands on even more.

      AND, you're going to see tax increases in 2010 when they let the Bush cuts expire.

      If there's a recovery, it will be in spite of what the government is doing, not because of it.

      There is ZERO, ZIP, NADA in the phony Scamulus that is aimed at cre More..

      Posted Oct-27-2009 By 

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  • 03.11.2009 update : Plans will not be realized.

    What did I say?

    Posted Nov-3-2009 By 

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  • Why cut taxes for hard-working Americans when you can just steal money and bribe the lower classes for votes with handouts (like Obamacare, cash-for-clunkers, extra food stamps, chronic unemployment benefits, free tv antennas, etc)

    Posted Oct-27-2009 By 

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  • Even Brazil knew what to do as Obama the miserable failure fucked it up worse.

    Posted Oct-27-2009 By 

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