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Merkel Hits Back at Opposition Tax Plans in Pre-Election Sniping

German Chancellor Angela Merkel said the economy can’t afford tax increases that the two opposition parties proposed in their platforms for Sept. 22 elections.

“We think we should strengthen domestic demand in Germany,” Merkel told reporters after talks with European and state lawmakers of her Christian Democratic Union in Dresden today. Taxing the “core wealth” of the mittelstand, the small and mid-size companies that make up the German economy’s backbone, “would be the completely false signal.”

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