German crafts leader warns tax hikes could cripple small businesses and growth
Jörg Dittrich, president of the German Confederation of Skilled Crafts, has spoken out against the government’s proposed tax reforms. He warned that increasing taxes on high earners could harm economic growth and called for a more balanced approach to taxation.
The reforms, he argued, risk overburdening those who drive performance and innovation in a stagnating economy. Dittrich highlighted that three-quarters of craft businesses operate as sole proprietorships or partnerships. These structures mean income tax effectively acts as corporate tax, leaving many without relief. He stressed that self-employed individuals, foremen, and skilled workers already face heavy tax burdens.
He also pushed for structural reforms to reduce the overall tax load on labour. High levies, he explained, increase service costs and discourage business expansion. While acknowledging that some tax rises might be unavoidable, he urged caution—particularly for entrepreneurs who create jobs and economic value.
On working hours, Dittrich proposed more flexibility to meet modern demands. Many employees, he noted, want adaptable schedules where extra hours could be traded for longer breaks later. But he insisted any such system must include safeguards to prevent misuse.
His core message was clear: tax policy should reward performance, not penalise it. High earners, he argued, are key to economic success and should not be disproportionately targeted. Dittrich’s remarks come as the government considers tax changes aimed at raising revenue. His warnings focus on the risks of stifling small businesses and high performers. The debate now centres on whether reforms will strike the right balance between fairness and economic growth.
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