My Tiny Feed

sueddeutsche.de

German Court Reviews Solidarity Surcharge Constitutionality

The German Constitutional Court is reviewing the constitutionality of the solidarity surcharge, a tax imposed to finance German reunification. The FDP challenges its continued existence, while the government argues that the financial need persists.

Read original article in German

German

Germany

PoliticsGermany Labour MarketFinanceTaxationConstitutionGerman Law

BundesverfassungsgerichtFdpBundesregierungDeutsches Institut Für Wirtschaftsforschung (Diw)Leibniz-Institut Für Wirtschaftsforschung Halle

Doris KönigHenning BergerKyrill-Alexander SchwarzMichael SchrodiAndreas AudretschRhona FetzerReint GroppFlorian ToncarKatja Hessel

What is the role and significance of the DIW study in this case?: A 2020 DIW study estimated continued reunification-related burdens on the federal budget until 2030, which the government uses to support its argument. However, critics argue the study lacks sufficient evidence.
What is the main legal issue being debated in the German Federal Constitutional Court?: The German Federal Constitutional Court is reviewing the constitutionality of the solidarity surcharge (Soli), a tax levied to finance German reunification.
What is the primary argument of the FDP politicians challenging the solidarity surcharge?: The FDP politicians argue that the Soli is unconstitutional since the end of Solidarpakt II in 2019, as its original purpose no longer applies and it creates unequal treatment.
How does the German government justify the continued existence of the solidarity surcharge?: The German government defends the Soli, arguing that reunification continues to necessitate additional funding and citing ongoing financial obligations.
What are the potential financial implications if the court declares the solidarity surcharge unconstitutional?: If the court rules against the Soli, the German government would need to find alternative funding sources for the roughly €12.75 billion currently generated annually, and potentially repay billions in past collections.

Jan 18, 04:06

German Works Councils Plummet to Historic Low

A new study reveals that only 7% of German companies have a works council, a historic low, highlighting concerns over worker representation and prompting calls for policy changes to strengthen works councils and address employer resistance.

Jan 14, 07:06

Insufficient Teacher Support Teams in Saxony: One-Person Teams Hamper Educational Goals

A Left Party inquiry in Saxony's state parliament revealed that multiprofessional teams designed to support teachers often consist of only one person, highlighting insufficient staffing and long-term funding issues across various school types, impacting teacher workload and potentially student outcomes.

Jan 13, 19:09

Teacher Exodus Looms in North Rhine-Westphalia Amidst Excessive Workloads

A survey of 3,105 teachers in North Rhine-Westphalia found that 38% are considering leaving their jobs due to excessive workloads, with over 40% working 41-50 hours weekly and 37% working over 50 hours, while the government cites 12,000 new hires in the last 36 months as a countermeasure.

Jan 7, 07:07

Rising Youth Unemployment in Rhineland-Palatinate

In Rhineland-Palatinate, youth unemployment is rising, with 10,500 young people unemployed in 2023—2,000 lacking school degrees and 7,900 lacking vocational degrees, compared to 9,100 in 2022 and an average of 10,000 over the past five years, prompting concerns about the impact of economic slowdowns.