Posted on 03/17/2005 6:56:46 AM PST by nypokerface
BERLIN (AFP) - German Chancellor Gerhard Schroeder proposed to cut corporate taxes and invest two billion euros (2.7 billion dollars) in transport projects in a bid to reduce the country's ranks of 5.2 million people unemployed.
Schroeder made the suggestion to slash corporate taxes from 25 percent to 19 percent in a speech to the Bundestag lower house of parliament in which he defended a package of reforms he introduced two years ago known as Agenda 2010.
He said he would unveil a radical overhaul of the tax system in the autumn.
The eagerly awaited speech was to be followed by a crisis summit later in the day with opposition leaders aimed at considering new ways to create jobs in the eurozone's biggest economy.
The chancellor reiterated that his ruling coalition of Social Democrats and Greens had already cut corporate taxes over the past two years, but he proposed to go further.
In order to fund the corporate tax cut, he proposed to save money by closing tax loopholes and reducing subsidies, and he called on the opposition to back him.
More specifically he said the government would make it more difficult for companies to offset previous losses against their taxes.
"We have to work seriously together to abolish these tax advantages," he said.
The two-billion-euro funding injection meanwhile would boost "investment in increased mobility and the German construction industry", a sector which is particularly ailing.
But Schroeder's proposals were immediately condemned as "insufficient", by Christian Democratic Union (CDU) chief Angela Merkel, one of the leaders invited to the job summit.
"The chancellor is at best a repair man, but he is no architect of a new social market economy," she told parliament.
About 5.22 million people -- 12.6 percent of the workforce -- are unemployed in Germany, the highest figures since 1945, according to figures from February.
Turning to specific measures to create jobs, the chancellor announced a 250-million-euro scheme to help the older unemployed, people over 50.
"Social cohesion for our society is not a luxury that we can simply cast aside in difficult times," he said.
In their letter requesting a meeting with Schroeder, the opposition leaders set out a 10-point plan to encourage job creation, including cutting taxes for small and medium-sized companies, creating better legal conditions to encourage employment and lowering unemployment insurance.
But the German people are expecting little positive to emerge from the jobs summit -- 77 percent said it would produce nothing, according to a poll in the Tageszeitung daily on Tuesday.
A controversial package of measures designed to inject new life into the labour market, known as Hartz IV, was introduced on January 1 this year but it is too early to see its effects.
More taxes, hey that will work. (SARCASM OFF)
All they have to do is follow Bush's plan, that's all. But their pride keeps kicking them in the butt.
Shouldn't this statement be examined? Who can write a report and dangle this thought but leave it unanswered?
Do the Germans think that the economics of self interest do not work?
Do the Germans think something bad like a personal income tax hike will follow a corporate tax cut?
Have the Germans drunk the Marxist flavored Kool-Aid?
What gives.
Tax cuts only help the rich, especially when only the rich have jobs.
Tax the rich even more. Develope more government assistance. And help out the less fortunate.
Now where have I heard that before ???? HHmmmmm
Don't tell SKERRY.
I do wonder if a Bush bash would be effective in winning re-election. I'm not sure that is going to work for him this time.
I wonder how our Libs feel about one of their heros giving tax breaks to evil corporations? LOL
Apparently they recognize that this 'plan' is pure BS, and would actually increase taxes, not lower them.
They seem to realize that their leaders would like to give the appearance of making bold changes while really doing nothing.
Tax the rich even more. Develope more government assistance. And help out the less fortunate.
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Sounds like Hitlery's acceptance speech at the 2008 Dem convention...right out of the Communist Manifesto...
Socialist are not supposed to cut taxes. Ask any democrat this will not work.
~ snicker
Maybe the Germans are smart enough to recognize that most of these summits are just government bureaucrats showing each other charts and turning perfectly good oxygen into carbon dioxide. If someone asked me will the _________ summit produce anything, my gut reaction would be to say "no" without looking any further.
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