Merkel Allies Seek to Keep Tax Cut Alive, Handelsblatt Reports

German Chancellor Angela Merkel’s government may seek alternative ways to reduce income taxes if opposition parties block its planned 6 billion-euro ($8 billion) tax cut in the upper house of parliament, Handelsblatt reported, citing members of the two smaller parties in her three-party coalition.

The solidarity surcharge, imposed to aid the formerly communist east of the country after German reunification in 1990, can be abolished by a lower-house vote, avoiding the upper house where Merkel’s coalition lacks a majority, the Dusseldorf- based newspaper said today.

To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.