The current odds of tax increases to pay for increased spending of the government in Germany for the virus? Zero.
Well....that's what ARD is reporting from the Q-and-A session with Chancellor Merkel yesterday. She was careful how she answered it.....noting that the future is always in a changing pattern.
Will spending trigger a tax episode? Somewhere into the early part of 2021....my humble belief is that a tax to recover forty billion Euro (over a minimum of two years) will have to be created. Whether it's a temp-tax or a permanent-tax....is the real question to ponder.
Adding onto this.....you still don't know the true cost for Corona in 2020. If it picks up again in September? Well, that chatter exists as well. The pain suffered by hotels and restaurants? Eventually.....some type of 'help' will have to be created, and that might amount to ten billion Euro by itself.
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