The mood between the CDU and CSU is tense before the Union summit. CSU politician Albert Füracker addressed clear words to the sister party.
Munich – Shortly before the Union summit on Friday in Munich, there are warnings from the CSU to the CDU not to vacate key tax policy positions. Bavaria’s Finance Minister Albert Füracker warns the sister party against a debate about a higher top tax rate. In the interview, the CSU politician also talks about the lawsuit against the multi-billion dollar financial equalization of the federal states.
Please enlighten us: You are currently fighting against the financial equalization, which Markus Söder negotiated himself as Finance Minister and celebrated as a great success. Is Söder now suing Söder?
No. The new regulation at that time really brought some relief for Bavaria. But since then, the disparity between payers and recipients has widened even further.
Just talk more intensively with the other countries. is there nothing?
I’ve tried multiple times. The constellation is clear: four countries pay in, the rest collect money. I can’t find a majority to change a system.
Do you really believe that the constitutional judges are opposed to this supposed federal German comment?
We have clear arguments. 18 billion euros in compensation volume per year, of which we pay around ten billion – of course that is disproportionate. And there are also gross distortions within the system. Example property transfer tax…
…now it gets complicated!
Yes – but for Bavaria alone it’s more than half a billion euros. A fictitious amount counts for the state financial equalization. Bavaria charges a much lower real estate transfer tax than the other countries in order to relieve the citizens when buying real estate. With fiscal equalization, however, we are asked to pay as if we had a much higher tax rate, namely the average for all countries. So: Those who lower taxes will be punished. I can no longer accept this system. This has nothing to do with federal competition.
Will you win the lawsuit – or do you want to force negotiations this way?
I am convinced that the Constitutional Court will repeal the law in this form.
What specifically are other countries affording that you don’t have the money for?
In Berlin, for example, we hear about free day-care centers, highly subsidized train tickets and free concerts. That doesn’t go with a balance that is supposed to compensate for the structural inequalities of the countries in such a way that all countries can do their duty.
They are lacking in solidarity, meow other countries. Bayern was nursed up itself.
We were a recipient country until the 80s, that’s true. We received 3.4 billion euros, but have paid in over 108 billion since then. I have to give 15 percent of the Bavarian budget to the other states. Is that unsound?
Critics accuse you of putting on a right-wing spectacle before the Bavarian elections: you are suing the financial equalization, the inheritance tax and the traffic light election law…
Incorrect. There are very good reasons for every complaint and for the timing. We have been fighting for higher allowances for inheritance tax for years. The situation is completely absurd: in 2009 tax exemptions were fixed that have remained unchanged since then, while real estate values in Bavaria are rising extremely sharply and the valuation rules for buildings are being made more stringent. Federal Finance Minister Lindner claims he sees the problem – but does nothing. If I don’t complain now, then when?
They want to regionalize inheritance tax. Do you understand the argument that ruinous tax competition would then start nationwide?
No. You have to endure a certain amount of competition. I’m not calling for the inheritance tax to be abolished entirely. But it must not force ordinary people who inherit a house and are hit by taxes to sell it. So far, the law has ignored the fact that I have different real estate values in the Uckermark than in southern Upper Bavaria.
The CDU has now submitted proposals to increase the top tax rate. That surprised us a bit…
Me too. Tax increases, especially in a recessionary phase, are completely the wrong way – I don’t go along with that. This is the basic position of the CSU and it will not be changed.
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