It is a simple but politically sensitive step that would bring the state enormous additional revenue: the VAT to increase. If the standard rate increased from 19 to 21 percent, economists estimate that revenue would increase by more than 30 billion euros. At a rate of 22 percent, it would be almost 50 billion euros.
It remains to be seen whether the black-red coalition will actually use this option. It is one of many that the government is currently discussing to plug the holes in the federal budget. One thing is clear: she could make enormous use of the income. Especially if, as promised, they have one “major income tax reform” want to implement.