Richest German States Challenge System of Paying for Poor
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The German state governments of Bavaria and Hesse announced plans to challenge the federal system of tax transfers to the country’s poorer regions, saying they’re being unfairly penalized for their relative wealth.
Bavaria, whose capital of Munich is home to Bayerische Motoren Werke and Siemens AG, and Hesse, where Deutsche Bank AG and the European Central Bank are based, are the two biggest per-capita contributors under Germany’s post-World War II system of financial redistribution among the country’s 16 states.