German industry is discussing tax law for companies in times of crisis with experts and politicians.

The Federal Minister of Finance is there virtually - not as a speaker, but as a source of inspiration with his "Growth Package 2023/2024".

In the paper initiated by Christian Lindner (FDP), which was drawn up to form internal opinions and was published shortly before the turn of the year, there is talk of a renaissance in tax competition, which is to be expected in this decade.

For the following reason: “The high effective load was put into perspective by other factors.

This phase is over.”

Manfred Schaefers

Business correspondent in Berlin.

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Industry President Siegfried Russwurm gratefully took up this idea at the beginning of the congress.

"The global competitiveness of the location is at risk," he judges.

In a comparison of location factors, Germany fell to the bottom.

Above all America and Canada, but also Sweden, Austria and Switzerland offer excellent conditions.

The government in Washington has shown what extensive support for climate-friendly technologies could look like, for which 350 billion euros are planned, albeit over ten years.

The President of the Federation of German Industries warns the traffic light coalition to use tax policy to continue to enable value creation in Germany.

Corporate taxes would have to drop from around 30 percent to the international average of 25 percent.

According to him, the nominal average tax burden on corporations in the EU is only around 21 percent.

At the same time, he is concerned that the bureaucracy monster German tax law will get new food with the implementation of the new global minimum tax.

He speaks of a nightmare.

Prevent another bureaucracy monster

Parliamentary State Secretary Katja Hessel (FDP), who represents Lindner, explains the dilemma in which her party is.

The FDP would probably want to improve some things, but that's hardly possible in the coalition.

That's why she formulates sentences like: "We must work together to ensure that Germany can remain a successful business location." A competitive tax law is necessary.

However, there are one or two nuances among the coalition partners when it comes to tax rates and questions of justice.

In Russwurm's direction, she says: They want to prevent another bureaucratic monster.

But that is not easy, since every new tax task entails new bureaucracy.

"I hope it won't be the nightmare, but it won't be the lullaby asleep either."

Monika Schnitzer, Chairwoman of the Council of Experts for the Assessment of Overall Economic Development, sees the industry under pressure to adapt as far as energy consumption and the associated costs are concerned, but considers the state's aid options to be limited.

"Using taxpayers' money to stop structural change is costly and in most cases unsuccessful."

In view of the high level of inflation, the fiscal stimulus should be limited anyway so as not to further fuel price increases.

"It cannot be in the interests of taxpayers to support entrepreneurs on a large scale who are relocating their location and their jobs away from Germany." That's not all, she reiterates the proposals from the most recent annual report, a higher burden on taxpayers for some Taking the time to reduce the burden of new debt on future generations: postponing the reduction of cold progression, introducing temporary energy solos or increasing the top tax rate for a limited period of time.

Contradiction is not long in coming.

Even if the end of an increased tax burden is in the law, based on previous experience one has to expect that the time limit will be canceled later, says Hubertus Bardt, Managing Director of the employer-related Institute of German Business.

In any case, potential investors would then have to take into account that future tax policy would be based on the cash situation.

According to the principle of prudence, they would always have to reckon with higher tax rates.