Regards, Ivan
Posted on 12/15/2002 3:51:20 PM PST by MadIvan
The leaders of some of Germany's biggest companies believe their country faces its worst crisis since the war amid deep scepticism about the ability of the government to solve Germany's problems.
Their anger comes as the government of chancellor Gerhard Schröder this week prepares to unveil a unitary 25 per cent savings tax and an amnesty to encourage the repatriation of undeclared savings abroad.
Business leaders, surveyed by the Financial Times and FT Deutschland, its sister paper, fear that rises in taxation and non-wage labour costs imposed by Mr Schröder since his re-election in September will stifle already weak growth.
"Along with the majority of German citizens, I am shocked by the present conceptionless government," said Herbert Hainer, chairman of the Adidas sportswear group.
"Even with the best of intentions, one cannot identify any strategy in the government's plans which could make our country fit for the challenges of the future. Nobody has a clue in this overall chaos."
The business chiefs are also angry about constant changes in tax policy and the government's inability to tackle long-standing structural problems, such as a rule-bound labour market, overstretched pensions scheme and a healthcare system nearing financial collapse.
"Not since the end of the war have conditions been as bad as today," said Alexander von Tippelskirch, head of the IKB Deutsche Industriebank, a business lender.
The problem was also highlighted by Ulrich Schumacher, chief executive of Infineon, who told the Financial Times that the Munich-based semiconductor group would consider moving its headquarters out of the country because German taxation rates, often double those paid by competitors, were placing a dangerous burden on the company.
The results came from a survey of Germany's 100 biggest quoted groups. Respondents included the heads of Bayer and BASF in chemicals, Volkswagen in motors and HVB Group in banking.
The planned savings-tax scheme follows intense wrangling in Mr Schröder's ruling Social Democratic party about ways to plug big gaps in federal and state governments' budgets.
The new moves would come a week after European Union finance ministers failed to agree on a joint approach on taxing savings to curb tax evasion.
A single 25 per cent tax rate on savings would appeal to higher-rate taxpayers who are taxed at source at 30 per cent and then subjected to additional tax at top marginal rates of up to 48.5 per cent.
Differences over tax culminated last week in public clashes between the chancellor and Sigmar Gabriel, the premier of Lower Saxony. Mr Gabriel, a potential successor to Mr Schröder, has demanded the reintroduction of the wealth tax, abolished in 1997, to finance extra education spending.
Regards, Ivan
To be honest, I think a lot more of the average citizens recognise it than the people in the political establishment do. There are very few European countries where you have a major political party threatening the cozy socialist consensus.
Regards, Ivan
Meine Herren, you must pay zee taxes so zee millions uff nice Turkish immigrants on velfare vill be hoppy.
In this case, it's the Twilight of a Bumbler Who Thinks He's God. ;)
Regards, Ivan
At the rate they're going, the average time interval between these events in Germany is about to get a lot shorter, very soon.
In fact government is usually the problem.
Probably because many are benefitting from socialism. (Getting someone else's money)
As the saying goes: When you rob Peter to pay Paul you can always count on Paul's support. - Tom
Ronald Reagan said it first.
Regards, Ivan
I don't suppose they realized that taxing savings encourages people to stuff mattresses instead of depositing money in banks. Not too many banks offer enough interest on savings to offset 25% in tax losses!
In light of the apparent widespread enactment of this extremely myopic tax strategy, the rise in gold prices makes a lot more sense.
Or send it to offshore banks like in the Channel Islands or Switzerland.
Regards, Ivan
"Twilight of the Gods", if I'm not mistaken.
Götterdämmerung is the last of the four operas that comprise The Ring of the Nibelung, by Richard Wagner.
I believe Mr. the Terrible is enjoying a bit of a play on words. ;^)
Or just spend it on "bier, schnapps und zigaretten", and lapse into depression and despair.
The world simply contains too much reality for them. A serious crimp on their utopian desires.
Mr. Catah, Mr. Jimmuh Catah, please pick up a white courtesy phone...
Oh, and BTW, Germany's latest outrage on the WOT front:
Report: second suspect in Tunisian synagogue attack has left Germany
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