In the beginning of the federal election campaign, the Federation of German Industries (BDI) called for relief for the economy.

A study by the Institut der deutschen Wirtschaft (IW) on its behalf comes to the conclusion that lower corporate taxes would pay off for the business location.

"Positive effects on economic growth" as well as on private investments and employment are to be expected.

However, lower corporate taxes are viewed particularly critically by the left.

The IW examined the effects of reducing corporate income tax from the current 15 percent to 10 percent, as proposed by the BDI, and completely abolishing the solos.

Within ten years, the additional demand for capital and consumer goods would exceed the government's shortfall in revenue by 33 billion euros.

The “Handelsblatt” reported on the study on Thursday.

In addition, the higher growth would also lead to additional government revenue, so that around a third of the reform would be self-financing.

In addition, an employment effect “in the five-digit range” is to be expected.

The number of employees would increase by 23,200 in the first five years.

According to the investigation, tax cuts will not fizzle out

According to the model calculations, the gross domestic product would increase by a total of almost 28 billion euros over the first five years;

by a good 57 billion euros within ten years.

"The figures prove it: Tax cuts for companies in Germany, the highest tax country, are not only fiscally manageable, but also have demonstrably positive effects on economic growth," said BDI President Siegfried Russwurm.

In the IW study, the economists point out that the current tax burden for companies in Germany is around 30 percent.

It is made up of corporation tax, trade tax and solidarity surcharge.

This makes Germany a “high tax country” in an international comparison.

The EU average is a good 22 percent, the OECD average 23.5 percent.

"Tax cuts are not a gift for companies, but a decisive prerequisite for additional economic activity and investments in Germany," said Russwurm.

This increases the chances that Germany will grow out of its corona debts.

An additional burden or a wealth tax, on the other hand, could "stifle the hoped-for economic upswing".

The FDP supports the demands of the economy

FDP parliamentary group vice Christian Dürr spoke of "important conclusions" that the study draws.

"Relief must be at the top of the agenda after the federal election," he said.

Germany must become an attractive location in which companies are happy to invest.

Therefore, the solos would first have to be abolished and then companies and people with small and medium incomes would have to be relieved.

The left is fundamentally critical of low corporate taxes. In its basic positions, it refers to numerous ways of reducing the actual tax burden to below 30 percent - for example through exceptions to the determination of profits and the international shift of profits. The Left demands, among other things, a corporation tax of at least 25 percent.