Counting the Costs of German Parties’ Tax Plans

(Bloomberg) -- Ahead of Sunday’s German election, the Social Democrats, the Greens and the Left Party have proposed tax hikes targeting higher income households as well as a continuation of the solidarity surcharge and a new wealth tax, while the CDU/CSU alliance and the liberal Free Democrats are running on a platform of tax cuts for corporates and higher earners. Overall, the fiscal stance of more right-leaning coalitions, such as Jamaica and Mickey Mouse, would likely be more expansionary, according to calculations by Bloomberg Economics. They would offer more support to growth, although the likely reinstatement of the debt brake from 2023 could end up ironing out those differences.

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