The German Finance Minister has suggested that tax cuts could be made in the next few years. Various commentators have pointed out that the personal income tax thresholds have not increased in line with inflation, leading to the phenomenon of bracket creep where individuals are paying more income tax even if there is not increase in their real incomes
The Finance Minister has also commented that with time the level of trust within the coalition will increase and it will be possible to agree on tax policy issues. Although there is no immediate prospect of changes to tax thresholds the situation could later be reviewed by the coalition.
