B. Investment and Performance-Promoting Tax Policies
The tax burden expected in the present, and even more in the future, doubtless plays an incredibly important role in investment decisions. At least as significant, however, are the expectations of the investor in light of future wage, work-time, social, environmental, legal, and economic and financial policies. To this extent, the effect of isolated tax measures should not be overestimated.
Guidelines:
– Avoid a rise in the macroeconomic tax load ratio; do not resort to parafiscal regulations (penny charges)
– Structure the tax system to be more performance- and investment-friendly by eliminating or reducing the following structural programs (reduces the urgency of concerted investment incentives):
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– Widespread compensation of tax revenue shortfall (in connection with solving the aforementioned tax structure problems) by increasing, in particular, the value added tax, but not for the return of the secret tax increases (“inflation-induced progression effect”), which is necessary anyway
– Speedy determination of the context of tax measures, but step-by-step implementation within the framework of an advance schedule.
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C. Consolidation of Social Safety and Employment-Promoting Social and Labor Market Policies
Guidelines:
– Long-term consolidation of the social safety systems without raising contributions or introducing charges
– Stronger consideration of the principles of private pensions/savings and co-payment, as well as subsidiarity (decentralized care as far as possible and reinforcement of self-help by the family, such as in care for the elderly) in all areas of social policy
– Ease flexibilization of work time, but no reduction in working hours decreed or sponsored by the state
– Generally no further restrictions in freedom of movement of companies, and review of existing legal regulations with an eye toward their impact on employment.
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