The Federal Minister of Finance has now joined in the discussion about a possible abolition of the solidarity surcharge. According to Wolfgang Schäuble, the solos introduced for the Aufbau Ost will remain at least partially even after 2019. “I do […]
The Federal Minister of Finance has now joined in the discussion about a possible abolition of the solidarity surcharge. According to Wolfgang Schäuble, the solos introduced for the Aufbau Ost will remain at least partially even after 2019. “I do not believe, as I assess the situation, that one day it will disappear without replacement,” said Schäuble at an event of the Chamber of Industry and Commerce (IHK) in Berlin.
The Soli will be put to the test at the end of 2018. Until then he was agreed. “And you will see that the ideas everywhere what you can do with it would require a tripling of the solidarity surcharge – at least,” added the CDU politician with a view to demands from the federal states and municipalities.
Soli in the future for debt repayment of all federal states?
Saarland’s Prime Minister Annegret Kramp-Karrenbauer (CDU) was open to a proposal by Hamburg’s Mayor Olaf Scholz (SPD) to use the solidarity surcharge in future to repay all federal states. The countries should develop a common position on how things should continue in 2019 after the end of Solidarity Pact II with the award. The municipalities have proposed to develop the Soli into an investment fund for the rehabilitation of roads.
At the weekend, Saxony’s Prime Minister Stanislaw Tillich (CDU) questioned the solidarity surcharge. “When the federal government’s task of bearing the division-related burdens has been fulfilled, there is no longer any reason for this special tax. It would be fair to abolish the solos then ”, Tillich told the“ Welt ”.
Tax hike in disguise
Tillich rejected Scholz’s suggestion: “The continuation of the solos for this purpose would be a disguised tax increase that we cannot allow.” Last summer, Chancellor Angela Merkel (CDU) spoke out in favor of maintaining the solidarity surcharge.
The former Federal Minister of Finance Theo Waigel, during whose term of office the additional tax was introduced in 1991, expects an end to the solos. “The solidarity surcharge cannot exist forever,” said the CSU politician, according to the “Südthüringer Zeitung”. “The Federal Constitutional Court could decide that the original purpose – the financing of German unity – no longer applies after so many years.”