…peaked eight years ago.
DB2
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Peaked with a higher corporate tax rate.
Google AI
In 2017, the German corporate tax rate was a combination of federal corporate income tax and a municipal trade tax, resulting in an average combined rate of approximately 30%.
The breakdown of the tax rate was as follows:
- Federal Corporate Income Tax (Körperschaftsteuer): A flat rate of 15%.
- Solidarity Surcharge (Solidaritätszuschlag): A surcharge of 5.5% on the federal corporate income tax, which made the effective federal rate approximately 15.825% (15% * 1.055).
- Municipal Trade Tax (Gewerbesteuer): This rate varied by municipality, typically ranging from 14% to 17% in major cities, but could be between 7% and 20.3%. The average rate for this component was around 14%.
Therefore, the total, combined corporate tax burden on corporate profits was typically between 23% and 33%, averaging around 30% nationwide.
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Loss of low cost Russian natural gas has to be a major burden on industrial production. German plants can no longer compete in global markets. Major adjustment needed to survive. Many expected to close.
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Higher corporate taxes would help them survive.
Germany won’t raise the taxes.
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“The welfare state as we have it today can no longer be financed with what we can economically afford.”…
Once the export champion of Europe, Germany’s economy has slowed dramatically since 2017, with GDP growing by only 1.6% since then versus 9.5% for the rest of the eurozone…
Meanwhile, spending on social welfare has exploded, and is set to increase further this year as Germany’s population ages and unemployment rises. Although the majority of benefit recipients are German, large numbers are non-German citizens.
DB2
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