Merkel Rejects Extra Burden on Wealthy People for Corona Crisis
Chancellor Merkel believes that there should be no additional taxes on the wealthy to help pay for corona spending. “We don’t want additional taxes on property, but the most important thing is to create (economic) growth,” Merkel said on Wednesday.
According to her, growth generates additional income, and that is the government’s core strategy. She also said it would not cut social security benefits.
The cost of the Merkel government’s chosen way of fighting the dreaded coronavirus is gigantic. The country was again placed in a strict lockdown on Wednesday that will last until at least 10 January. For example, the Christmas period is the most critical time of the year for many companies such as retailers.
Usually, more than 100 billion euros will be converted in Germany. The government shuts down businesses and then pays out money to cover losses, but observers fear many companies won’t be able to reopen next year.
Germany incurs a lot of ‘corona costs’ due to more unemployment, taking out loans, the purchase and distribution of vaccines, the disappearance of economic activities and all kinds of support programs. Even before the current lockdown, German media already estimate that the country will spend 1500 billion euros on this corona policy.
The Deutsche Bank feared earlier this year that the country will be presented with the enormous bill ever for corona spending, possibly 1,900 billion. It could become more expensive than the cost of merging the GDR in the rest of Germany.