Now this generation – and with it, the entire country – is called upon to make a new political pact to thoroughly eliminate the stagnation and voicelessness into which the previous government led our country. In their place we will introduce policies that promote and reinforce individual responsibility. This is what we call the politics of the “New Center.” We will take this path in partnership with others. Everyone inside and outside the country can count on our government’s commitment to its social and political responsibility.
The hopes placed on us are almost overwhelming. But a government cannot improve a country on its own. Everyone must help out. And the more initiative and energy people devote to reforming our society, the greater the success will be.
The people of Germany do not lack creative powers. We will help them develop these powers.
2.
Ladies and gentlemen, there is no doubt: mass unemployment continues to be our most pressing and painful problem. It leads to psychological breakdowns and the collapse of social structures. It destroys the hopes of some and makes others afraid. And it presently burdens our polity to the tune of 170 million DM a year.
The federal government is fully aware that it essentially owes its election to the expectation that it will be able to effectively reduce unemployment. And it is precisely this challenge that we will tackle.
Every measure, every instrument will be scrutinized in order to determine if it secures existing jobs or creates new ones. We want to be able to be judged at any time – not just in four years – by how much we are contributing to the fight against unemployment.
The tax reform that we are about to introduce is a first step in this direction. We will not continue to talk about the need for tax reform for another sixteen years and weigh the pros and cons of various interest groups. No, ladies and gentlemen, we are going ahead with this tax reform.
The reform is based on insights into economic necessities. It combines modern pragmatism with a strong sense of social fairness. It focuses on offering relief to the employed and their families, as well as to small and medium-sized businesses. We want to and will fortify their innovative strength. Both of these things together will help reduce unemployment, create new jobs, and secure existing ones.
Our tax reform includes relief amounting to a total of 57 billion DM. After counter-financing, fifteen billion DM will remain for taxpayers and businesses as a net tax relief. There will be a lasting reduction in income tax rates, and the child allowance will be increased. Over the entire legislative period, an average-income family with two children will benefit from a net tax relief of 2,700 DM annually.
We will close tax loopholes and abolish unjustified perquisites. This clearly shows that we are distributing societal burdens more justly.
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