Court of Auditors warns: Loss of billions through the government's tax benefits

Court of Auditors warns: Loss of billions through the government's tax benefits

Auditorships Merz presents massive savings list

In a current special report, the Federal Audit Office has presented comprehensive austerity measures that could be important for the upcoming federal government under the leadership of Friedrich Merz. The report shows that the German state could save up to 30 billion euros per year by returning tax subsidies. These subsidies, which are often granted as tax discounts for specific groups or industries, are regarded as an important source of loss of income that is reinforced by an excessive load distribution to public finances.

criticism of the tax system

The President of the Court of Auditors, Kay Scheller, has emphasized that stable and sustainable government finances are essential, especially in view of the rising public debts. The need to consolidate the federal budget is considered urgent. In particular, the Court of Auditors demands that the planned tax reliefs of the new government are covered because they could go hand in hand with high losses in state revenue.

recommendations for tax reform

The tax discounts such as the tax reduction for craftsman services or the diesel privilege, which cost significant amounts of tax revenue, play a special role. The Court of Auditors recommends a fundamental reform of the reduced VAT rate, whereby the burden on the general public is in particular under discussion by subsidies for luxury goods. An alignment of the reduced tax rates to basic supply is considered necessary to ensure fiscal efficiency.

Tax evasion combat

In addition, the report emphasizes the importance of the struggle against tax evasion. Suggestions to improve the IT infrastructure of the tax offices, a sharper procedure for money laundering and more efficient use of health insurance records could help narrow down the high loss of income. The Court of Auditors emphasizes that the current practice to record cash income should be revised and more effective to promote tax justice.

Potential effects on citizens and companies

The implementation of the proposed measures could have positive effects on state revenues and at the same time contribute to relieving the future budget. However, it can be expected that both citizens and companies will have to accept clamps without the usual tax advantages. However, according to the Auditors' Court, these cuts are necessary to ensure the long -term financial stability of the state.