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German Cabinet Agrees on  Tax Cut to Revive Economy - 2003-06-29

German Chancellor Gerhard Schroeder says his cabinet has agreed to a sweeping tax cut plan to try to revive Europe's largest economy.

Mr. Schroeder made the announcement today Sunday.

The income tax cuts are estimated to be worth about $20 billion, and come on top of another tax cut already scheduled to take effect next year.

The proposed tax cuts must be approved by parliament, where the plan faces opposition from conservative leaders. Conservatives worry the tax cuts would take too much money away from government subsidies and increase the national debt.

Mr. Schroeder says the tax cuts are necessary to boost the economy and reduce unemployment.