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Tax on “War Profits”: Profit is profit

Nicholas by Nicholas
June 6, 2022
in News
0



KOnce the current budget is through, the budget for 2023 casts a shadow. Finance Minister Lindner (FDP) wants to use the bill before the summer break to prove that the traffic light is respecting the debt brake – as promised – without pulling the emergency clause again. There is hardly any room for new wishes, even if they should be in the coalition agreement. Not everyone understood that, right up to the top of the SPD and Greens. After SPD social affairs minister Heil, parliamentary group leader Mützenich announced the next relief for “the center”, where small subsidies quickly lead to spending in the billions. The Green Agriculture Minister Özdemir insists on reduced VAT for vegetables to relieve the poor and – caring – to encourage healthy eating. The social association VdK now wants to sue for pensioners in court for the 300 euro energy flat rate.

The new request concert is accompanied by poisoned proposals to the finance minister to increase taxes after all. Of course, “only” for those companies that the war allegedly brings “excess profits” attract SPD leader Klingbeil like the Green dual leadership. They have their eye on the mineral oil companies, which are benefiting from the uncertainty on the oil market.

The idea is poisoned not so much because it unnecessarily suggests that the FDP break its central election promise. Such a break may be necessary if the world develops differently than expected during the election campaign. But after the traffic light is saturated with credit authorizations, there is no need for tax increases. On the contrary, everything that slows down the economy must now be avoided.

  • Julia Loehr

  • Published/Updated:

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Higher taxes would be poison for companies, especially those that break with the principles of the market economy. These include treating profits equally and not discriminating by industry. That opens the door to arbitrariness. It should not be at the discretion of politicians to determine when profit is “earned” and when it must be skimmed. What about companies benefiting from the solar boom? The FDP has more than one good argument on its side to ward off an excess profit tax.



Tags: FDPoil companiesSPDwar profit

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