So if you didn't grasp this....here, two years into the Covid-adventure....the government has spent a fair amount of money that it didn't have. Then they spent money on the Ahr Valley disaster, and they've covered five or six things which consumed cash in a unexpected way.
The new government of Germany (to be led by the SPD) really needs tax increases to occur in 2022. A lot of Germans are criticizing the anticipated move.
Enter the coalition partners (potentially)....the Greens and FDP. The Greens are in full agreement, and want the taxes to all be carbon-related and aimed at mostly the ultra-rich of Germany. The FDP? They've laid the big card down....that there might be welling nature to accept a autobahn speed and some mandates, but NO new taxes.
What'll happen? A long process in talking will occur, and the SPD will be in a rough position....unable to form a government without the FDP. I suspect that the best deal to be gained is one or two modest tax increases (probably aimed at companies like Facebook/Google), and that's it.
This government in serious trouble without the big tax increases? Either way, it's a problem. You don't want new big taxes in the middle of a recession. But Covid has cost the government a big chunk of money.
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