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Germany agrees to tax breaks

Germany agrees to tax breaks

Angela Merkel says her government has agreed on tax breaks for Germans worth (EURO)6 million ($8.3 million), as "thanks" for the burden they have had to carry in Europe's ongoing debt crisis.
Merkel told reporters after an agreement was reached late Sunday among her Christian Democrats and their coalition partners that the tax cuts would come in two steps starting in January 2013 and ease the burden on lower and middle income Germans.
The legislation must still be approved by parliament.
The news agency dapd reports that Merkel said her government wanted to "thank citizens for the many burdens they have borne in the international financial crisis."
Germany expects a tax take of (EURO)16.2 billion ($22.3 billion) this year, higher than previously forecast.