German state eyes VAT hike for more welfare reform

Newswire

By Nick Antonovics

BERLIN, March 16 (Reuters) - The state of Schleswig-Holstein proposed on Tuesday that further reform of Germany's welfare state should be financed by hiking value added tax (VAT) as part of a 10-point programme to simplify the tax system.

The proposal was significant because Schleswig-Holstein is one of the few German states to be governed by a coalition of Social Democrats and Greens, mirroring the federal government's power-sharing arrangement. But ...

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