(Steering without taxes; 05-02; p.3)
Trade, crafts and industry as second group of people involved
complain about losses in domestic turnovers and so in profits.
To shed some light on this group, it is worth mentioning that
according to the latest available figures - of the year 1987 unfortunately
- roundabout 87 % of German enterprises had less than ten employees,
roundabout 95 % had less than twenty (Bundesministerium für Finanzen:
zur Steuerpolitik. [translated: Federal Ministry of Finance:
Data collection about tax politics.] Update: 03.12.01. p. 23).
German enterprises are mostly, to more than 80 %, owned by individuals,
i.e. the entrepreneur pays - after deducing some other taxes -
income tax on his profits (ibid., p. 24).
The third group are the employed. Based on statistical average
income, an employee in 1999 was paid about 25 000 Euro a year
which roughly equals the same amount in US-Dollars and about 16
667 British Pounds. Of this, he had as disposable income about
61% in case he had not been married and no children; if he was
married, his wife not employed and they had two children, he was
left with about 86%.
Tax reforms raised disposable income in the following year about
one percent respectively and more cuts in income tax have already
been declared. However - and that is the crucial point of the
current debate -, they might be outbalanced by raised taxes on
pensions and health. (Cf. ibid., p. 7f.)
Also, one should bear in mind that wage-earners, misguided by
"analytising" boasters and economic criminals, had spent
at least parts of their income for the "bubble-economy"
and lost them after the bubbles went bust.
The desolate state of the state's budget stems obviously from
consciously reducing revenue. The already mentioned reforms in
income tax as well as some other laws which led to tax reductions
mostly for companies based on capital paved the way for that.
- Apparently, the rationale behind that lay in the assumption
that more suppliers will be met on the markets and so that revenue
will at least not decrease even while the taxes for companies
and individual entrepreneurs will. Besides, for the time being
the state did not much to guarantee compliance to tax laws. (read