BERLIN: The German Crowdfunding Network joined a broad coalition of business advocates last month to plead with the German government to not raise taxes on capital gains.
Typically politicians are always in search of revenue (new taxes) to spend on public projects and services. Some with merit, others not so much. Periodically capital gains tax increases inevitably circle back around as a source of “revenue”.
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Germany is not immune to this phenomena. What policy makers almost always miss is that increasing capital gains tax impacts the portion of the economy that is most important. Small businesses grow, and thrive, off the backs of investors that shoulder great risk on the hope of an outsized gain. Small business is the engine of economic growth for most countries, Germany included, boosting small business means more jobs for all. SMEs raise money and then they spend it on infrastucture and employees. This multiplier effect is often debated, but clearly a vital part of wealth creation and prosperity. Somehow some politicians seem to miss this fact.
