Germany's four leading industry associations urged the government on Sunday to implement cuts in taxes and social costs for the middle class, saying average Germans had not benefited sufficiently from an economic upswing.
In a joint letter issued after Germany's Christian Social Union (CSU) unveiled a new tax cut proposal, leaders of the BDI, BDA, DIHK and ZDH industry groups said government tax revenues had soared by 91 billion euros between 2004 and 2007, while German workers had seen net gains of just 18 billion euros. "The government must ensure, through lower taxes and payroll costs, that the people feel they are being treated fairly again," the groups said.
They said cuts in taxes and other costs could be implemented without the government abandoning its long-stated goal to balance the federal budget. The CSU unveiled a plan last week that would cut taxes by 28 billion euros between 2009 and 2012. Chancellor Angela Merkel's Christian Democrats have vowed to work with their Bavarian sister party to come up with a joint tax relief package ahead of next year's federal election.
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