The Next Step in German Tax Reform: Accelerating Economic Growth

Abstract:
The latest German federal election took place on 27 September 2009 to elect the members of the Bundestag, the federal parliament of Germany. As preliminary results had already shown, the Christian Democratic Union (CDU), the Christian Social Union of Bavaria (CSU), and the Free Democratic Party (FDP) were able to form a conservative/liberal coalition that will govern during the next four years. The coalition agreement was signed on 26 October 2009 setting out the agenda for the upcoming legislative period. The agreement that describes the government’s policy goals and how it intends to achieve those goals includes some details on planned tax changes, which are likely to affect many taxpayers.