German government sees higher tax take as economy grows
BERLIN (AP) — The German government says solid economic growth and low unemployment are expected to boost its tax take over the next few years.
A twice-yearly assessment released by the finance ministry Wednesday forecast tax income of 772.1 billion euros ($917.7 billion) this year, 7.8 billion euros more than predicted in November.
Over a five-year period, tax income is expected to be 63.3 billion euros higher.
Finance Minister Olaf Scholz said much of the extra income was already factored into the government’s plans, but additional money will be used among other things for limited tax relief starting next year.
The center-left Social Democrats wrested the finance ministry from Chancellor Angela Merkel’s conservatives in coalition talks this year. However, Scholz appears set on maintaining predecessor Wolfgang Schaeuble’s tight grip on the purse strings.