Tax Cuts Good, Industry Leader Says

Germany's proposed corporate tax "will free investment for many corporations and create jobs," BDI President Jürgen Thumann told German news magazine Focus this weekend. "Many businessmen and managers have told me that they will steer their investment to Germany if the agreed reforms become reality," he said, noting that the investment backlog totalled billions of euros. Thumann added that further reforms were urgent, including a comprehensive overhaul of the tax system. The chancellor's reforms that include corporate tax cuts from 25 to 19 percent and increased spending on infrastructure were given a lukewarm reception after being introduced Thursday in parliament. Some business leaders say that the proposals are insufficient to sway investment decisions. Others such as the conservative opposition while agreeing in principal to tax cuts dislike the chancellor's plan to finance the seven billion euros ($9.40 billion) in reductions. Union leaders complain that the amount of spending is too small for any significant results.