A Better Budget for 2020

Proposed by Left Forward · Passed 10 Feb 2020

✅ Passed

Rationale

As promised, we are addressing the budget surplus; now that the infrastructure projects have been completed, a significant surplus has emerged in the budget. As promised, we are now returning this surplus. On the one hand, we see an opportunity to lower taxes to reduce the tax burden on all income levels while simultaneously investing in important sectors such as education. A second, more far-reaching budget amendment is also planned. However, we must wait for the current amendment to take effect and closely monitor its impact.

Figures show the previous budget where they changed the new value.

Annual Taxes

Earning band Tax rate
Personal income tax: Low earners 18% 17%
Personal income tax: Medium earners 22% 21%
Personal income tax: High earners 32% 30%
Personal income tax: Elite earners 39%

Annual Spending

Category $ per capita Amount
Social Welfare $1,806 $190.0bn
Retirement $3,565 $375.0bn
Healthcare $2,852 $3,032 $300.0bn $319.0bn
Education $1,806 $1,996 $190.0bn $210.0bn
Housing $713 $760 $75.0bn $80.0bn
Justice, Police & Internal Security $760 $80.0bn
Defence $494 $52.0bn
Environment & Climate $266 $352 $28.0bn $37.0bn
Business Support $713 $75.0bn
Arts, Culture & Media $285 $333 $30.0bn $35.0bn
Foreign Aid $124 $190 $13.0bn $20.0bn
Roads & Highways $356 $475 $37.5bn $50.0bn
Public Transport & Rail $285 $380 $30.0bn $40.0bn
Energy Infrastructure $214 $285 $22.5bn $30.0bn
Ports & Airports $143 $190 $15.0bn $20.0bn
Total $1,513.0bn $1,613.0bn

Vote tally

Bundesrat

Passed
37Yes 0No 6Not voted 43 seats

For: 37 / 43 filled seats (86.0%) — needs 50.0%

Against: 0 · Abstained: 0 · Not voted: 6

Party Seats Vote
Alliance For Digital Freedom And Rights 16 Yes
Alliance23 8 Not voted
Competence And Freedom 8 Yes
Homeland Alliance 0 Not voted
Left Forward Proposer 13 Yes
Saxenheim Workers’ Union 0 No

Bundestag

Passed
354Yes 0No 53Not voted 407 seats

For: 354 / 407 filled seats (87.0%) — needs 50.0%

Against: 0 · Abstained: 0 · Not voted: 53

Party Seats Vote
Alliance For Digital Freedom And Rights 151 Yes
Alliance23 75 Not voted
Competence And Freedom 77 Yes
Homeland Alliance 0 Not voted
Left Forward Proposer 126 Yes
Saxenheim Workers’ Union 0 No

Voting record

Every vote must state a public reason. Most recent first.

“ADFR's moderately supportive of the new proposed budget. There are many things we like but we aren't thrilled by the fact that the surplus will be halved: a steady surplus is necessary to chip off debt and finally reach a zero-debt budget, which would mean no more interests on debt, and therefore less taxes for citizens. That said, we deem it reasonable to cut taxes for high-earners since we can afford it, whilst decreasing them further for low and medium earners' probably a bit too much, as they already pay significantly less than they would in any other country, but more money in our citizens' pockets means more money spent towards our industries. For these reasons, we're voting in favour of Left Forward's proposal, as we almost always, convincedly, do.”

No

“While targeted tax relief and investment can strengthen the nation, this proposal expands government spending far beyond what is necessary. Excessive funding for foreign aid, climate initiatives, and cultural programs weakens fiscal discipline and diverts resources from the core responsibilities of the state. Public finances should be managed with restraint, prioritising national security, economic strength, and essential infrastructure.”

Competence And Freedom
Voted Feb. 7, 2020
Yes

“This budget is definitely considered an improvement compared to previous proposals by us. We still disagree with several of the spending increases, but the bill also contains several measures we approve of. Given that this budget is only temporary, we will not obstruct it this time, but we would like to make it clear that further changes are necessary once the election concludes.”

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