Federal government is planning a billion dollar aid: tax cuts for companies!

Federal government is planning a billion dollar aid: tax cuts for companies!

in Baden-Württemberg is currently all about the future of the economy. On Wednesday, Chancellor Friedrich Merz (CDU) met with the Prime Minister of the States to talk about a comprehensive relief package for companies. The aim of the federal level is to smooth the waves in the economy and to alleviate the effects of the current growth doldrums. As SWR , companies should be supported by tax cuts and targeted investment incentives. A healthy portion of optimism is required because the total income from taxes is likely to fall by 48.4 billion euros in the coming years - a real challenge for the municipalities.

The construction of a financial network is necessary so as not to bring the municipalities into the bredouille. Baden-Württemberg's Prime Minister Winfried Kretschmann (Greens) has already asked for financial compensation to cushion the increased burdens of the municipalities. The cities and municipalities, including Tübingen, Baden-Baden and Karlsruhe, are currently struggling with financial deficits, increasingly by increasing wage and energy costs as well as additional tasks. Details on the planned compensation, how many millions flow from the federal government are still unclear.

The rescue anchors: investment booster and tax cuts

Kernpiece of the new program is the so -called "investment booster", which is intended to create considerable incentives through tax reductions and relief when buying machines and electric vehicles for 2025 to 2029. For example, companies can look forward to special depreciation: up to 30% depreciation per year for machines, systems and electric vehicles, while corporation tax is to gradually drop to 10% from 2028. The federal government expects an economic effect of almost 46 billion euros to boost growth again. The implementation of these measures is intended to improve both the corporate climate and stimulate the investments, although further structural reforms are considered necessary to increase competitiveness in the coming years. This also summarizes Tagesschau concisely together.

The planned measures of the Federal Cabinet is intended to drop the general tax burden from almost 30% to around 25% by 2032. The Federal Ministry of Finance emphasizes that the focus is on e-mobility and innovative research projects becomes to fuel technological progress. This also includes degressive depreciation to new electric vehicles and an increase in the upper limit for tax research allowances.

But the joy of the new package could initially be slowed down by a stagnating economy. While experts remain optimistic, the time will show whether the investment package really brings the desired thrust. The effects are probably limited this year because the first half of the year is already behind us. Critics also criticize the lack of a lack of targeted impulses for medium -sized companies and demand that depreciation and corporate tax cuts summarize to create real incentives. Tagesschau continues to report on the critical voices from the economy.

In the coming week, the Bundestag will decide on the project, which is crucial for the financial stability of the federal states and municipalities in Germany. An unification process between the federal and state governments will continue to be necessary, because approval in the Federal Council also remains to be seen. One of the greatest challenges for politics is here: how the financial bottlenecks of the municipalities can be solved sustainably.