The Spendthrift State

Germany has fallen into the socialists’ trap once again.

Thomas Kolbe | August 12, 2026

Germany’s new experiment in socialism requires the use of every remaining resource available to its citizens. That there would be no real relief should have been obvious for quite some time to anyone taking a realistic view of the reform. Meanwhile, Klingbeil’s troops are working to keep bleeding the citizenry -- with small pinpricks carried out beneath the radar of public attention.

The government has promised us €10 billion in tax relief. That would amount to almost exactly one percent of the total tax revenue of the German state apparatus -- a sham, a joke, indeed, if not an outright insult to those who grit their teeth and endure the ideological grand experiment of eco-socialism.

And even this meager relief, which would not constitute genuine relief in the first place because it would be offset by a higher top tax rate and possible increases in VAT, is now quietly being clawed back elsewhere. The latest move by the Klingbeil camp: tax allowances for associations and certain types of corporate gains are to be abolished.

For example, the existing €5,000 tax allowance for taxable corporations, associations of persons and pools of assets is to be reduced to a €1,000 exemption threshold from next year onward. The distinction between a tax allowance and an exemption threshold is by no means a mere technicality of tax law. With a tax allowance, the amount remains tax-free up to the defined threshold. With an exemption threshold, by contrast, the entire tax benefit disappears as soon as the threshold is exceeded.

In addition, the existing €45,000 allowance........

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