Germany rakes in record tax income | TheLocal.de

“A government exacts various taxes from the citizens which the citizens are able to pay by their different material activities: agriculture, trade and industry; thus the government can also exact taxes in the form of income tax and sales tax. This is compared to the sun drawing water from the earth. When there is again need of water on the surface of the globe, the same sunshine converts the water into clouds and distributes it all over the globe. Similarly, the taxes collected by the government must be distributed to the people again, as educational work, public work, sanitary work, etc. This is very essential for a good government.”
Krishna, the Supreme Personality of Godhead
by His Divine Grace A. C. Bhaktivedanta Swami Prabhupada
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Germany rakes in record tax income | TheLocal.de
Published: 27 Jan 12 15:23 CET — December saw the biggest tax haul in German history, it was reported Friday – but the recent revenue boom is slowing down.
Germany’s long resilience to the eurozone economic crisis appears to be wearing down, even though the Finance Ministry reported a record tax income of €71 billion (USD 94 billion) in December 2011 – a 4.1 percent increase on the same month the year before.

That was a significant slowdown from previous months: November saw a 7.6 percent increase and October a 8.5 percent increase.
Tax income growth slowed steadily throughout 2011, but remained healthy – increasing by 10.8 percent in the first quarter, and 6.1 percent in the fourth.

But the latest figures may hide some cause for concern, since December is traditionally the strongest tax month of the year, since it contains extra spending and income over Christmas.

Germany’s federal budget for 2011 has reflected the positive figures, with the country only taking on €17.3 billion in new debts. The federal government’s interest payments for the year totalled €32.8 billion.

The government’s prognoses for 2012 predict a slow start to the year as Germany struggles to manage the eurozone’s currency crisis, followed by a recovery in the second half of the year.

“The economy seems to be recovering and the tax income is strong,” Alfred Boss, economist at the Kiel Institute for the World Economy (IfW), told financial daily Handelsblatt. He predicts that the state could once again make ends meet with just €17 billion in new debts this year.

DPA/The Local/bk
source: TheLocal