Wolf Richter: No Wonder German Workers Drag Down Retail Sales – And Much Of The Economy
▻http://www.nakedcapitalism.com/2014/02/wolf-richter-wonder-german-workers-drag-retail-sales-much-economy.h
Not that 2013 was such a great year in Germany, economically speaking, with growth stalling out at a measly 0.4%, barely above the dreaded zero line. But it was a great year, nay, superb year, for extracting taxes from hard-working people. Tax collections by the Federal Government and the Länder (states), according to the Ministry of Finance, rose a combined 3.3% (in a stalling economy!) to €570.2 billion, the highest ever.
A few delicious goodies:
Corporations got off easy: After years of “tax reform,” the coddled German multinationals, and maybe even the Mittelstand – those closely-held global niche players that are the official pride of Germany – had apparently soaring profits, and corporate income tax revenues soared in parallel 15.2% to … drumroll … €19.5 billion. A mere 3.4% of all taxes collected! OK, they also faced other taxes, about which they have been complaining vociferously for years, including their share of €39.4 billion in energy tax, €7 billion in electricity tax, and €1.2 billion in nuclear fuels tax.
Consumers got whacked: revenues from the Value Added Tax (VAT) hit €196.8 billion – ten times the amount of corporate income taxes, and by far the largest component of all taxes. Individual income taxes jumped 6.1% to €158.2 billion – the second largest component. Workers also paid €14.4 billion in Solidarity Surcharge – a “temporary” tax to fund the bailout of East Germany after Reunification. They paid special taxes on tobacco, spirits, beer, and coffee. They paid taxes on motor vehicles. They paid big-fat taxes on energy. They paid taxes on income and consumption until they croaked.