<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>Various obstacles, such as a shortage of skilled workers, high labour costs, high corporate taxes, as well as increasing regulatory density and high-energy costs, hamper investment in Germany. In particular, the lack of significant tax reforms has eroded Germany’s tax attractiveness compared to other competitors, including France, the UK and the US in recent years. While the Growth Opportunities Act has positive aspects such as the broadening of tax incentives for research and development and the extension of loss carry back regulations, it does not generally alleviate the issue of high corporate taxes in Germany. Additionally, it does not substantially reduce bureaucratic burdens for businesses, as some of its provisions may increase administrative complexity.</p>
</abstract>

Various obstacles, such as a shortage of skilled workers, high labour costs, high corporate taxes, as well as increasing regulatory density and high-energy costs, hamper investment in Germany. In particular, the lack of significant tax reforms has eroded Germany’s tax attractiveness compared to other competitors, including France, the UK and the US in recent years. While the Growth Opportunities Act has positive aspects such as the broadening of tax incentives for research and development and the extension of loss carry back regulations, it does not generally alleviate the issue of high corporate taxes in Germany. Additionally, it does not substantially reduce bureaucratic burdens for businesses, as some of its provisions may increase administrative complexity.

How Can the Weakness of Investment in Germany be Countered in Terms of Tax Policy?

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Wie kann der Investitionsschwäche in Deutschland steuerpolitisch begegnet werden?

Various obstacles, such as a shortage of skilled workers, high labour costs, high corporate taxes, as well as increasing regulatory density and high-energy...

How Can the Weakness of Investment in Germany be Countered in Terms of Tax Policy?

Published Online: Oct 26, 2023

Page range: 665 - 669

DOI: https://doi.org/10.2478/wd-2023-0186

© 2023 Katharina Nicolay et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.