FDP's Election Agenda: Tax Cuts and Economic Reform

The Free Democratic Party (FDP) in Germany has unveiled a bold election program centered on significant tax reductions. General Secretary Marco Buschmann presented the party's manifesto, highlighting financial relief for both individuals and businesses. The FDP aims to shift away from their tenure in the failed "traffic light" coalition, seeking to end incremental policy-making in favor of more decisive actions.

The party proposes traditional economic liberal measures, including reducing the state's scope to its core functions and enhancing individual responsibility. Key tax reforms include lowering the threshold for the top tax rate from an annual income of €68,000 to €96,600, raising the basic tax allowance by at least €1,000, and abolishing the solidarity surcharge. These changes, the party argues, will benefit higher earners significantly, though they claim the middle class will also experience relief.

Despite anticipated skepticism regarding the feasibility of these proposals, Buschmann assures they are financially viable. He underscores a potential savings of €10 billion in the current budget, with significant cuts in social spending and migration costs. The party also supports a flexible retirement entry, encouraging longer workforce participation, potentially increasing tax revenues by up to €5 billion annually.

In economic policy, the FDP seeks to lower corporate taxes, improve depreciation options, and reduce bureaucracy, fostering private investment. Additional proposals include introducing a cheaper unemployment insurance option and restricting strikes in critical sectors like transportation and childcare. On education, the party advocates for a nationwide standardized "Germany Abitur" to ensure comparable school qualifications across states.

Buschmann refrained from endorsing a specific coalition partner post-election but noted similarities between FDP's economic direction and the Union's, hinting at a potential collaboration with Friedrich Merz's party.