Bloomberg News

German Tax Cuts to Reach up to 7 Billion Euros, Schaeuble Says

October 20, 2011

Oct. 20 (Bloomberg) -- Germany plans to reduce income tax by as much as 7 billion euros next year, Finance Minister Wolfgang Schaeuble said today in Berlin.

The step is aimed at ironing out an inconstistency in the tax burden when employed people move between tax categories, known as “cold progression,” Schaeuble told reporters during a presentation of new economic forecasts. Schaeuble said the government doesn’t plan automatic tax adjustments but will review the tax burden every two years.

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