Bert Rürup: Old tax, bad tax
The trade tax was introduced at the end of the 19th century. In view of the internet, digitalization and artificial intelligence, the municipal tax seems outdated today.
Many German cities and towns are facing a financial crisis, with streets not being renovated, schools awaiting modernization, and cultural offerings and swimming pools being cut back. The financial struggles of municipalities have worsened, with most cities and towns posting deficits since 2023, after ten years of fiscal stability.
The deficit reached a record 31.9 billion euros in 2024, with 7.5% of municipal spending not covered by regular income. Municipal spending has consistently grown faster than income, with personnel costs rising 6.8%, social spending 6%, and interest payments 13.5% in 2025.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
