Germany’s Corporate Tax Collapse Signals Economic Crisis

A recalibration of the welfare state to match economic realities will soon be unavoidable. Until then, the illusion of prosperity is kept alive by credit.

What is to be expected now? The state will increasingly draw on citizens’ resources to close the growing budget gaps. The corporate tax collapse was likely no anomaly, and it will become ever more expensive to use sectors like defense to mask the collapse of German industry and protect the labor market.

Debates over raising inheritance tax, reintroducing wealth tax, and potential special levies on the rich last year were preparatory. Now, it is serious.

The dead-end German politics has led this country down is brittle. Beneath it yawns an abyss, now revealed in its full depth in Ministry of Finance numbers.

https://www.zerohedge.com/markets/germanys-corporate-tax-collapse-signals-economic-crisis