West German Cabinet OKs heavy cuts in income taxes
The West German Cabinet approved a $6.5 billion package of income tax cuts Tuesday which it says are the biggest in the nation's history. The first stage, in 1986, will reduce taxes by $3.5 billion, mainly benefiting those with middle and low incomes, as well as families, by raising tax thresholds and sharply increasing tax-free child benefits. The second phase, worth $3 billion and due to go into effect in 1988, will reform tax thresholds across the board.
The finance minister aims to have the new tax law passed by Parliament by the middle of next year.