Economist Peter Bofinger views the SPD's plans to abolish marriage tax splitting as poor marketing. He advocates raising the top tax rate to 50 percent instead and warns against overestimating social reforms. In a Berlin interview, he commented on current economic policy ideas.
Peter Bofinger, the 71-year-old former economic advisor and current member of the federal government's pension commission, spoke clearly in Berlin about SPD tax and social plans.
He criticized Vice Chancellor Lars Klingbeil's (SPD) proposals to abolish marriage tax splitting. "That is no good marketing for the SPD," Bofinger said. He also dismisses raising social contributions for high earners, as self-employed individuals and civil servants would be exempt.
Raising the top tax rate back to 50 percent would be better, the economist advised. Moreover, he doubts that social reforms can resolve Germany's structural crisis. "To believe that we now make proper social reforms, cut bureaucracy, and then everything runs smoothly again in the country is a big fallacy," he warned. "That will not fundamentally change our deeper economic problems."
Bofinger noted that Economy Minister Katherina Reiche (CDU) has not yet grasped these points.
