18/03/2005 4:00:17 pm
Schröder: Lower Tax, Lower Unemployment. The German chancellor Gerhard Schröder is continuing to push for reforms. So far, the reforms have only scrateched the surface of big government and not had significant effects. Thus, German economic growth is very weak and unemployment is at its highest since World War II. Now, one more step Germany will take is to lower the federal corporate tax from 25 to 19 %. This is largely due to the low taxes in the new EU countries and the measure is aimed at creating more jobs, says Schröder. This will not be a sufficient measure either, but it is a step. Thus, the German Social Democrat government decreases the taxes to have more jobs and the Swedish dito talks about doing the opposite.

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