International tax competition makes it possible for multinational enterprises subject to taxation in different countries to minimise their tax burden. While national governments tend to see this as a risk to their tax revenues, companies which have established themselves internationally must be considered a boon to the German treasury. Despite the opportunities for transferring profits abroad, they contribute handsomely to the country’s fiscal system.
Income tax policy plays a relevant role in the election programs for the German federal election 2021. According to the election programs, basically all parties are aiming for relief for small and medium incomes and for households with children.
In der politischen Debatte wird teilweise argumentiert, dass die Erbschaftsteuer die bessere Vermögensteuer sei.