geändert / updated: 17/04/08


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(Steering without taxes; 05-02; p.2)

The interesting question apart from day-to-day necessities is, what caused this precarious state and how it can be overcome structurally.


The state of Germany's nation

Obviously, the bank has not been broken yet: the government is still able to fulfil its social obligations as stipulated in Germany's Basic Law that serves as constitution and the country is far from Argentinian conditions.

But the Minister of Finance and his federal and communal colleagues complain in unison about massive tax losses. That comes with the fact that the state's new loans in 2002 will sum up to more than three percent of its gross domestic product, i.e. the value of all products and services generated in Germany this year.
So, the government is breaking one of the criteria of the Maastricht-treaty and therefore has to count in some penalty, too. The intention for such a clause is to penalise indebting oneself at will by imposing extra-costs; as consequence however, debtors will find it increasingly hard to balance their accounts if they can pay their penalties only by new loans.

On the other hand, the state - defined as comprising every government and civil service body on all administrative levels - spends tax money for several purposes. In an indefinite summary these are:
• spendings to guarantee the very existence of society, i.e. the budget for defence;
• spendings to keep society functional, i.e. budgets for infrastructure or the police;
• social spendings, i.e. budgets for transfer pays like social security or spendings for health and pensions;
• spendings for goods and services offered by political will, i.e. collective goods like public libraries, pools, parks or subsidies for solar cells manufactured by German firms, cultural foundations, societies.
Besides, the state itself needs tax money to function. (read on here)

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Struktur / sitemap 2002

Ausgaben / issues



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