Top Economist Warns: Tax Cuts on Fuel Help the Wrong People
4 Articles
4 Articles
The Federal Government wants to relieve drivers in the face of high petrol and diesel prices. Ifo President Clemens Fuest, however, considers several discussed measures to be inappropriate.
The oil price has skipped the 100 dollar mark. Ifo CEO Fuest warns of flat-rate tax cuts on fuel. He calls for more targeted measures.
Ifo President Fuest warns against flat-rate tax cuts in the fight against high fuel prices. He considers it more useful: a higher commuting fee from 20 kilometers, lower car taxes or direct payments to low-income households.
The head of the Munich-based Ifo-Institute, Clemens Fuest, opposes the plans of the black and red coalition to reduce the high fuel prices on a flat-rate basis. "Reductions in VAT or energy taxes are not the right instruments," Fuest said. The government cannot eliminate the overall economic costs of higher oil prices. "It can only redistribute these costs." To do so, Fuest demanded that they choose instruments that are as precise as possible. "…
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