Posted on 11/18/2002 3:53:18 PM PST by knighthawk
BERLIN (AP) — Germany's governing coalition has agreed to propose a new tax on individuals' profits from stock, real estate and investment fund holdings as it struggles to plug a hole in the budget and keep down the country's deficit, a senior aide to Chancellor Gerhard Schroeder said Monday.
The capital gains tax will be imposed at a rate of 15 percent, Olaf Scholz, the general secretary of Schroeder's Social Democrats, told ARD television. Under current rules, investors are exempt from tax on gains if their shares are held for at least a year.
``We have found a very moderate solution by international standards,'' Scholz said. The move by the Social Democrats and their junior coalition partner, the Greens, is subject to approval by parliament.
Since winning re-election in September, Schroeder has angered Germans and triggered protests by medical workers with plans to close tax loopholes, cut subsidies and squeeze savings out of the national health insurance system. As part of emergency budget measures, parliament on Friday voted to raise a payroll tax that currently funds retirement benefits.
Health Minister Ulla Schmidt touched off a new furor by suggesting in weekend interviews that voluntary private old-age savings plans introduced during Schroeder's first term may have to be made mandatory if not enough people sign up over the next few years.
Last week, the government announced that stagnation in Europe's biggest economy threatens to reduce projected tax revenue by 31.4 billion euros (31.4 billion) this year and next. An independent panel that advises Schroeder on economic issues said Germany will breach European Union limits on government budget deficits not only this year but also in 2003.
If people want on or off this list, please let me know.
This will help the Euroweenies self-destruct!
If only we could persuade China to follow suit!
It is going to be interesting to see when the socialists start blaming the EU for their problems. It will happen.
The link is in German.
Angela merkel (CDU) wants to form an investigatory committee to find documentation or files that prove the SPD knew the true state of the economy before the election, but decided to keep it secret.
She's accusing the SPD and Schroeder of "intentional Campaign Fraud".
Also:
Schroeder is currently eighth on the list of Germany's 'most favorite' politicians. The SPD has sunk to below 30% in the public opinion polls. The CDU is up to 55%. Greens gained a point to 9%.
longjack
Can socialists blame other socialists?
'Die Doofen sterben nie aus'
English = Idiots will never become extinct.
longjack
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