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Tax losses due to the Corona crisis lower than expected

Article from November 16, 2020 – 15:48

Stuttgart (dpa / lsw) – The tax shortfalls for the state of Baden-Württemberg due to the Corona crisis are not quite as dramatic as recently assumed. The official autumn tax estimate for 2020 assumes income of 28.27 billion euros – 541 million euros more than previously expected, as the Ministry of Finance announced on Monday. For 2021, the tax estimators are currently expecting income of 30.37 billion euros – 295 million euros more than estimated in the second supplementary budget. In 2022, tax revenues of the same magnitude as before the crisis could be tied again, it said. The trend of stabilizing income continues, the ministry announced. «The situation is and will remain a major challenge for all of us. This also applies financially, ”emphasized Finance Minister Edith Sitzmann (Greens). «With the extensive aid from the federal and state governments, we were able to support many companies during the crisis. The economy and with it the income of Baden-Württemberg seem to be stabilizing. Much, however, depends on the further development of the pandemic – here, in Europe and worldwide. ” In 2022, the tax estimators are expecting revenues of 30.99 billion euros – this would mean that net tax revenues would again be above those before the crisis for the first time: in 2019 they amounted to around 30.47 billion euros. The income would have to be used above all to reduce the debt, demanded the Federation of Taxpayers Baden-Württemberg. The state parliament must watch with eagle eyes that the forecast additional tax income does not lead to increased expenditure. “The coffers are getting fuller than planned in the budget. This can lead to new spending requests. Additional expenses would be another mortgage for the future, ”said the chairman of the Baden-Württemberg taxpayers’ association, Zenon Bilaniuk. The Greens parliamentary group leader Andreas Schwarz sees it similarly. The forecast is “no reason to cheer, but a positive signal”. In addition to investments in the fight against the consequences of the corona pandemic, it is also about prudence and caution: “We have taken out large loans to lead the country well through the crisis, which must be repaid,” said Schwarz. On the other hand, the SPD would like to use part of the funds in education: “We expect the employment of 1,000 additional teachers and a budget for the schools totaling 10 million euros in order to be able to offer qualified support,” demanded party leader Andreas Stoch. In addition, the municipalities would have to be supported in purchasing air filters. The FDP reminded of the financially troubled municipalities, which are dependent on the strongly cyclical trade tax. The country will not be able to avoid support in the coming year, which will then have to be financed, said the financial policy spokesman for the Landtag FDP, Stephen Brauer. The municipalities are currently being helped with a municipal stability and future pact amounting to 4.27 billion euros. The pact primarily provides for a compensation of the corona-related failures in the municipal financial compensation and in the trade tax. Compared to the estimate from autumn 2019, districts, cities and municipalities can therefore expect a slight increase of 34 million euros in 2020. In 2021, however, the municipalities must assume a minus of 2.3 billion euros compared to the autumn tax estimate for 2019.

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