Michael Kretschmer, Minister President of Saxony, is calling for the federal states to be able to reclaim unforeseen additional costs from the federal government as a result of federal legislation. The CDU politician told the Redaktionsnetzwerk Deutschland (RND) that a "mechanism" was needed that would allow them to sue for the money in the event of cost increases. It is a matter of subsequent financing if the cost burden is actually many times higher as a result of a law.
No loss of tax revenue for federal states and local authorities
Kretschmer questioned his agreement to the compensation for cold progression and the tax rebate for foreign skilled workers included in the Ampel economic package. Far-reaching revenue shortfalls for the federal states and municipalities in terms of joint taxes were "unacceptable", he said, speaking of a "dilemma". Tax relief for citizens and companies in order to boost the economy and improve the competitiveness of the German economy is to be welcomed in principle. "However, it must go much further to increase incentives to work and invest."
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