Tax cuts
January 8, 2010
A majority of Germans are opposed to further tax cuts, according to a new poll by state broadcaster ARD.
The survey of 1,000 voters found that 58 percent were against the planned tax cuts, while as many as 69 percent of high-income earners oppose a reduction.
"The ARD 'Germany Trend' poll shows a surprising but remarkably clear picture of public sentiment - the majority opposes plans to cut taxes next year," said Joerg Schoenenborn, head of ARD polling.
Widespread rejection
The rejection cuts across all political parties. Even the majority of the supporters of the pro-business Free Democratic Party (FDP), who are pushing hard for tax cuts in 2011, oppose the idea.
"The main reason is that government debt has risen to record levels and there are fears the economic crisis will lead to unforeseen expenditures in the months ahead," said Schoenenbom.
Merkel's support collapses
The same poll also revealed that support for German Chancellor Angela Merkel has plunged to its lowest level in three years.
Merkel suffered an 11-point drop in popularity in the monthly poll, with only 59 percent saying they are satisfied with her performance - her lowest rating since December 2006, and the biggest one-month drop for a German chancellor in seven years.
In a broadly negative assessment of her center-right coalition, the ARD TV poll found 77 percent not satisfied with the start of Merkel's second term, which has been plagued by rows over Afghanistan, taxes and relations with Poland.
Vice-Chancellor Guido Westerwelle, Germany's foreign minister and FDP leader, also saw his support drop 7 points to 36 percent in the last month.
Coalition quarrels
The reason for the sudden fall in popularity is widely seen to be the bickering between the parties of Germany's ruling coalition.
Tax cuts have been at the heart of disputes between Merkel's Christian Democrats (CDU), their Christian Social Union (CSU) sister party and the FDP, Merkel’s coalition partner.
The pro-business FDP argues that tax cuts would encourage small and medium-sized businesses to invest more, while Merkel has warned that deep tax cuts will worsen Germany's huge public deficit and cause budget problems for years to come.
The government's own economic advisers have criticized the planned cuts in the face of a record recession.
smh/bk/AFP/Reuters
Editor: Susan Houlton