Taxes in Germany My financial future in my hands Reischach Realschule Immendingen March 2019
Table of Content • • • •
Brief history of taxes What are taxes? Evolution of taxes Past and future challenges
Brief history of taxes • Taxes have a long history (more than 7000 years) • Bible: Mark 12:14 “Give back to Ceasar what is Ceasar’s and do God what is God’s”
Brief history of taxes In Germany Johannes von Miquel German Finance Minister from 1890-1901 - Creator of the first tax reform - His idea: Income Income tax tax Property Property tax tax Business Business tax tax
Brief history of taxes Situation before the tax reform - All direct taxes straight to the single states of the German Empire - Taxes used to pay for the First World War
Brief history of taxes After the Weimar Republic and before the Second World War - Inflation before and during World War 2 - Special taxes on escapes from Germany and Jewish businesses
Brief history of taxes West Germany
East Germany
- Individual taxes (income taxes, property tax, etc.)
• Individual tax not important • Socialist idea: Businesses owned by the state finances itself
What are taxes? Definition „A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.“ Most important taxes -
Income taxes Wage tax Value added tax (VAT) Business tax Import tax
What are taxes? National National security security schools schools
Erasmus+ Erasmus+
Taxes public public administration administration
Roads Roads
Evolution of taxes Tax Record High 2017: 734 Billion Euro
Evolution of Taxes
Evolution of Taxes
Past & Future Challenges
High tax income equals high life standard?
Past & Future Challenges • 2008: financial crisis (59 Billion Euro)
Past & Future Challenges • 2006 - ??: Berlin Airport
Past & Future Challenges • 2015 - ??: Refugee crisis
The End
Thank you!