MNI BRIEF: German Tax Plans Won't Meet Budget Shortfall - Ifo

Income tax reforms proposed by Germany's major political parties will have a positive effect on employment, with those of the FDP creating 330,000 jobs, according to an ifo study (in German). Die Linke's (The Left) plans would create 229,000 new jobs, compared with 100,000 under the CDU/CSU, the SPD's 66,000 and the Greens' 24,000. However, no party's tax reforms would be sufficient to offset government budget shortfalls caused by their spending plans.

Each set of plans would have differing effects on income inequality, the same study found, with CDU/CSU/FDP plans decreasing the tax burden on wealthier earners, while those of the Greens and Die Linke would have the opposite effect.