100 billion is missing. Corona rips huge tax hole - who should pay?

for the First time since the financial crisis in 2009, the drop in tax revenue of the Federal government, the länder and the municipalities, as the Ministry of

100 billion is missing. Corona rips huge tax hole - who should pay?

for the First time since the financial crisis in 2009, the drop in tax revenue of the Federal government, the länder and the municipalities, as the Ministry of Finance announced on Thursday in Berlin. The tax estimator expect this year to 81.5 billion euros less tax coming in than last year - a decrease of more than ten percent. The Federal government, the Länder and the local authorities must therefore make do with 98.6 billion Euro less than in November, it predicted and what was already scheduled in the house hold.

The tax revenue is forecast to even more drastic than in the financial crisis. In addition, the prospects for the coming years is bleak. By 2024, around 315,9 million Euro to the state, according to the most recent estimate is less than last autumn.

note : Who exactly is the tax estimator are and how you calculate the sums, read the very bottom.

failure of up to 60 billion euros alone in the case of municipalities

The Federal government expects in its spring economic forecast due to the Corona-crisis with the most severe recession of the post-war history. The economic performance is expected to crash to 6.3 percent. Lets not only commercial and tax break, but because of the drastic short-time work, the income tax.

  • The financial and legal consequences of the crisis in the News Ticker to the Corona Crash

Particularly hard-hit, it is the municipalities: Due to the Corona pandemic, the cities and municipalities expected for 2020, with a financial loss of 40 to 60 billion Euro. "The cities and municipalities in Germany, dark clouds are gathering," said chief Executive Gerd Landsberg to the "Passauer Neue Presse" from Wednesday. The results of the tax estimate showed that the local authorities must be expected on the basis of the Corona-pandemic "with a financial default, on an unprecedented scale," said Landsberg more. "The cost continues to rise." The municipalities, the inability to act of the threat.

Finance Ministry expects with a hole of nearly 120 billion Euro.

But also the Federal, the costs add up - while at the same time tax revenue for this and the coming year will be a break-in. For the first time since the financial crisis in 2009, the revenue of the Federal government, the länder and the municipalities are likely to fall, perhaps even stronger than it was then. Documents from the Ministry of Finance show that the Corona-crisis could tear this year, even a tax hole of 118,8 billion euros. Are you a leader? Then you make this Corona-survey!

Just eight weeks after the decision of the contact restrictions in the Wake of the Covid-19-pandemic, the Federal government and the Länder have decided at the beginning of may, the first loosening. A team of researchers from the Cologne University of applied Sciences takes this occasion to create within the framework of their study "conflicts, while the Corona-crisis," a mood picture of the impact of the relaxations. The survey is anonymous and takes about six minutes. It is here, accessible, and up to 25. May 2020 possible.

warning : The survey is aimed exclusively at managers.

in The initial budgeting anticipated revenue has provided the Vice-Chancellor Scholz for record investments in transport infrastructure and broadband Expansion. Significant funds will also be used for the protection of the climate and the digitalisation of schools. Add to that a basic pension for years of low-income earners, the removal of the solidarity surcharge for almost all citizens, and more children's money. Each one of these planned investments to implement the SPD also – in spite of the Corona-crisis.

the Federal government and the Länder want to claim the 750 billion in aid to pay

that is not enough: The already adopted Corona-aid to the state coffers already solid. The Ministry of Finance estimated the cost of the aid packages now on 453,4 billion Euro alone in the year 2020. This guarantees more than 800 billion euros, which may have to reach even if the company is unable to meet its credit obligations. It is unclear, moreover, whether trade and hospitality industry can get part of their revenue losses in the summer and fall back in.

a Total of more than 750 billion euros, the Federal government and the Länder want to jointly lift . Here you can see how this sum is composed.

the state's coffers are now empty

in addition to the cities and municipalities, which calls for a protective shield, but there are a whole range of supplicants, hoping for more aid from the Federal government: The auto industry, for example, calls for the additional purchase premiums, the Travel industry and the gastronomy of its own rescue Fund. It is each Time, and many billions of euros.

The government is all of these desires are not meet. On the contrary, The coffers are now empty – after six years without any new debt the black Zero just fell again for the first time.

so, where will all the money come from? In principle, it is clear that All the aid that the Federal government and state governments, now, must be paid for with funds from the respective budget. In other words, The taxpayer takes the bill. Reuters German Chancellor Angela Merkel (CDU) and her Vice-Chancellor and Finance Minister Olaf Scholz (SPD) in November 2019 in the Bundestag debate on the Federal budget in 2020

The Problem is that even under normal circumstances, tax revenues would not be sufficient to pay in the sums. Due to the crisis, the tax revenue is not only 2020, but the years melt away.

New taxes to pay debts?

If the debt of the Federal government and the countries should not increase permanently exorbitant is a need for extra money and in other Ways than in the past. In clear text: It is likely to lead to no new taxes and levies in the past. And this is precisely what the politicians are starting to worry.

talking about raising the tax rate of wealth tax (currently 45 percent on income over 250,000 euros) – or a levy to be particularly Wealthy. The difference is that a wealth tax would, at least theoretically, a one-time affair, a quasi-Corona-solidarity contribution from the Wealthy.

this is followed by a further series of questions follows, but: What is wealth? Who is so rich and wealthy, that he should also submit something? How high the tax should be? There is also the danger that a one-time payment for a permanent facility is is. Particularly, if the levy is likely to be stretched over several years and Rates paid.

the tax estimator and so you expect

The working group on tax estimates will meet twice a year, in spring and autumn. In this, experts from the Federal government, the five leading economic research institutes, the Federal Statistical office, the Bundesbank, the German Advisory Council on the assessment of Economic development in Germany, representatives of the länder ministries of Finance and the municipalities to sit. You go through the expected revenue in all tax types and add them. Cats warned him, but the dog wants to know: This is an error PCP mongrel "Tuesday" check it out: cats warned him, but the dog wants to know: This is an error

Updated Date: 21 May 2020, 18:30

You need to login to comment.

Please register or login.