Germany plans to cut income taxes

Finally some good news for all German taxpayers. The government is planning to cut income taxes from 2016. The cut is somewhere near two percent and it could save at least three billion euro per year.

Wolfgang Schauble, Germany's Finance Minister confirmed the information. The measure could be introduced in 2016. However, the Social Democrat party has been campaigning for a while against tax cuts and for the measure to pass it would need their support.

Sigman Bagriel the leader of the party recently said it is in favor for these cuts, but several important members of SPD were against it. Germany's budget appears to be fine. Spiegel reported surging tax income will bring 7 billion euros to the budget next year, almost 10 billion in 2016 and in excess of 11 billions by 2017.

All these figures were estimated with the two percent tax cut in mind. Although Germany has a healthy financial system it is facing high tax evasion. Officials have been battling with increased tax evasion in recent years and critics say the two percent tax cut is an attempt to reduce evasion.