Spring Report: economists calling for tax cuts – SPIEGEL ONLINE

The oil is cheap, the euro is weak consumer sentiment continues unabated: For the German economy, the conditions are nearly ideal. In their spring report, leading economic institutes therefore expect a significantly higher growth than they did six months ago. Given the robust recovery is therefore argue that economists now for a large tax cut.

The tariff should in particular be designed performance-friendly for small and medium incomes, citing the “Süddeutsche Zeitung” from the spring survey of economists. Such a move would relieve labor and increase the growth potential in the Federal Republic permanently. Reducing the tax burden on middle income would cost around 25 billion euros in the opinion of the researchers.

Official shall require institutions to their estimates before this Thursday in Berlin. As announced previously, want to raise its forecast from the fall of 1.2 significantly to 2.1 percent economists. In the coming year is then reacted with an increase in gross domestic product (GDP) expected 1.8 percent.

2014 had increased by 1.6 percent, the German GDP. The German export industry is currently benefiting among others from the cheap oil and the weak euro makes exports outside the euro cheaper. However, the main driver remains strong domestic demand with high-spending consumers.

The federal government also expects a new record of employment. The number of employed persons was expected to grow by 170,000 and increase to about 42.8 million annual average. According to the government, growth was driven primarily by strong domestic demand. Because saving is not worth because of the mini interest, consumers consume much. It is fitting that workers receive higher wages and salaries. The net wages is likely to attract 2.6 percent, rising inflation only moderate at 1.4 percent, the government said.