A top union official has expressed skepticism over the German government’s plan to reduce the corporate tax burden, arguing that it will not boost the economy. Frank Werneke, the chairman of the German Services Union, Verdi, stated that he does not see the planned corporate tax cut as a stimulus for the economy, as the real challenges lie in the shortage of skilled and unskilled labor and the need for education and training.
Werneke also disputed the notion that the corporate tax rate is too high, pointing out that the relative tax rates, taking into account tax planning and existing depreciation, place Germany in the middle of the European pack.
The union leader has also criticized the government’s plan to repeal the national supply chain due diligence law, combined with a weakening of the European supply chain directive. Werneke argued that the argument of de-bureaucratization is being used to undermine human rights and allow the persistence of dramatically poor working conditions. He described this as a clear step backward in terms of civilization.