According to hans michelbach, member of the cronach constituency and deputy chairman of the CSU parliamentary group, the annual report of the economic experts underscores the need for additional measures to strengthen corporate liquidity. "The slightly better forecast for this year should not obscure the fact that the recovery will take a long time and will not reach the level of 2019 until the beginning of 2022, michelbach said. He called on the social democrats to abandon their resistance to the inclusion of tax improvements for companies in the 2020 annual tax law.
He stressed that "the subsidies for the management of the pandemic crisis must be gradually restored…. It is much more effective to enable businesses to improve their liquidity." in addition, medium-sized partnerships that are in the continuation phase had to be better protected by changes in the inheritance tax law.
Leaving more money in the company
Michelbach explained that with the extension of the loss carry-forward to 2018, the state would not miss out on a cent. Companies already had the right to receive hourly repayments earlier to improve their liquidity. In addition, the tax advantages of retained earnings are an incentive to keep these profits in the company (these are profits that remain in the company after tax and distribution to shareholders, red. ). This also contributes to a broader liquidity base, the politician explained. At the same time, he pointed out the threat to the existence of partnerships that are in the process of succession