Following the release of the recent tax estimates, Mathias Middelberg, Deputy Chairman of the CDU/CSU parliamentary group, has advocated for accelerating the progress of the income tax reform. Middelberg stated to the Funke media group that the sobering result of the economic forecast makes it clear that prompt action is needed to re-establish a growth trajectory. He emphasized that incorporating a tax overhaul designed to ease the burden on both employees and businesses is crucial for this effort.
Middelberg stressed that the tax reform is not only necessary but also financially viable. According to him, significant savings opportunities exist within the federal budget. As an example of expenditure that requires review, he pointed to foreign climate protection measures, questioning their continued funding without proper accounting for Germany’s national CO2 budget.
The tax estimate, presented on Thursday, has increased the pressure on the federal budget. The latest projection alone forecasts a revenue shortfall of 10.1 billion euros for the federal government in 2027 compared to previous expectations.