Germany's economic challenges are coming to a head, as years of misguided policy decisions now bear fruit. Tax revenues are plummeting, a direct consequence of the state's relentless war on key industries such as automotive and energy. This is a stark lesson for those who believe a state can micromanage a complex economy—it inevitably ends in disaster.
Germans will soon have to face the reality of scaling back their overgrown welfare state. In the meantime, the government will likely squeeze every possible tax avenue dry, further burdening citizens and driving the economy deeper into recession. The latest report from the Federal Ministry of Finance reveals a 7.9% drop in tax revenue compared to the previous year, totaling just €63.8 billion. The sharp decline in VAT, down 9%, highlights Germany's ongoing consumption slump, despite recent wage increases.
The welfare state is really to blame here. The manpower is overburdened by you-know-what. The cost of maintaining is putting a strain in everything. The EU subsidies may not be lucrative as it seems.
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I'm waiting patiently for times when they can't afford to support all this cultural enrichment they brought within their borders.
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Yeah, a financial death spiral.
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It's bad to increase tax but Germany need to do this
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And yet the Chinese CCP very closely manages their economy and it has grown like nothing before in recorded history. More people have been brought out of poverty than ever...via CCP central planning! Shock horror! libertarians en masse in denial as they seek to not see how China politburo of engineers have carefully structured the highly centralised Chinese economy to be the fastest growing economy on the planet. Nobody can compete on price with this CCP centralised autocracy- The CCP directs fiat capital issuance toward projects, infrastructure and development which is calculated to build upon and increase China natural advantages of scale and relatively low wages. Belt and Road is a new global model for resource hegemony...over trade routes, finance and international standards and protocols. Rather than the democracies of the west where capital own the major parties, thereby negating any real choice for citizens, the CCP knows that if it does not deliver over 5-10-2-50 year time frames it will be removed upon the ancient mechanism of the Mandate of the Heavens. Most in the west do not yet understand, or dare not, this existential threat to their woke liberal democratic global resource hegemony.
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The birth rate is also way down leading to a future where there are less tax payers working and paying into the system to support a massive welfare state.
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You would think their automotive industry is doing well. I wonder how much control china has in that? How much does your income get taxed in Germany?
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How much does your income get taxed in Germany?
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42%?!?! Wow....thats a lot.
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