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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.

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