Initiative New Social Market Economy (INSM)
Berlin (ots)
Germany has become less competitive when it comes to corporate taxation and is one of the industrialized countries with the highest taxation of corporations. This results in an up-to-date overview of corporate taxation Institute of German Economy (IW) on behalf of the iInitiative New Social Market Economy (INSM).
While most OECD countries have lowered their tax rates for corporations, Germany is one of the four countries with increased tax rates. Corporate tax revenue in Germany has risen by 45 percent within ten years – far more than in comparable industrialized countries. In the area of income tax, which is paid primarily by many medium-sized companies, Germany’s top tax rate is not least due to the solidarity surcharge, at 47.5 percent a full five percentage points above the OECD average. Only 14 OECD countries have even higher tax rates, while 23 countries can advertise themselves with lower tax rates.
The total tax and contribution ratio, i.e. the share of taxes and social security contributions in gross domestic product, is 37.9 percent in Germany, which is 4.3 percentage points above the OECD average. Only eleven countries have an even higher tax and contribution ratio, 26 countries have a lower one.
In addition INSM managing director Thorsten Alsleben: “Germany is a country with the highest taxes and is falling further and further behind in location competition. Other countries are doing their homework, lowering corporate taxes and making themselves attractive to investors, while Germany is demanding more and more taxes from its companies. Politicians must change course quickly if we don’t add more companies and so that in the end taxpayers also want to lose. Only with such a supply policy will we survive in the location competition.”
The overview of the IW as well as further data on corporate taxation and the current campaign can be found at www.insm.de.
The Initiative New Social Market Economy is a non-partisan alliance of politics, business and science. It promotes the principles of the social market economy in Germany and provides impetus for a modern market economy policy. The INSM is financed by the employers’ associations of the metal and electrical industry.
Press contact:
Press spokesman INSM: Florian von Hennet, Tel. 030 27877-174;
[email protected]
Original content from: Initiative Neue Soziale Marktwirtschaft (INSM), transmitted by news aktuell
