In a published survey on Germany the OECD has suggested that the tax on labor could be cut while social security contributions could also be decreased for those on low incomes. This could promote growth, but currently Germany is too reliant on taxes on labor for its revenues. The OECD therefore suggests that real estate taxes could be raised. The valuations on which property taxes are based should also be updated.
There is currently a tax exemption in relation to profits arising from the sale of non-owner occupied property. The OECD suggests that this could be removed, and that some further tax exemptions from tax on capital gains could be abolished.
Higher government spending is planned for 2014 as a result of higher pension entitlements. These could be funded from the general tax take rather from the contributions to social welfare, thereby ensuring that the tax burden is spread more evenly through the population.
