Flood damage: Is a postponement of the tax reform the correct financing option?

Flood damage: Is a postponement of the tax reform the correct financing option? For financing the repairs necessitated by the recent the flood, the German government has decided to postpone the second phase of the tax reform by one year. Prof. Rolf Peffekoven, Mainz University, argues that financing should be primarily in the form of budget cuts: "A restructuring of government spending would be the correct option. If this cannot be achieved, the choice is only between two evils (increase in taxation or credit financing). With the postponement of the second phase of the tax reform the government has unfortunately decided on the greater evil." Also for Dr. Karl Heinz Däke of the German Taxpayers Alliance, the relief that was planned with the second phase of the tax reform would have produced absolutely essential economic stimulus. This opinion is also supported by Heinrich Traublinger, Handwerkskammer for Munich and Upper Bavaria. He believes that the trades and other consumer-related economic sectors will be disproportionately burdened by this decision. For Werner Hess, Dresdner Bank, the "solution lies in savings". On the one hand, it is positive that the Federal Government did not revert to even higher state indebtedness, on the other hand, "the necessary finance should come from a restructuring of government expenditures".