Creating Good Business Conditions for Family Enterprises
A major reform backlog has developed in Germany over the past decade. A catch-up process is now needed.
Increasing Business Resilience
Prioritizing Jobs – Strengthening Family Businesses
Reducing Bureaucracy: No Blanket Suspicion Against Businesses
- Supply Chain Due Diligence Act: Germany should not unilaterally introduce regulations that increase bureaucratic burdens. Similar complications are expected from an EU directive. Globalization must be governed by global standards.
- Corporate Sanctions Law: Existing legal provisions are already sufficient to address corporate misconduct. Additional oversight structures add complexity without increasing security.
- Transparency Register: Businesses must register their data in multiple places, increasing administrative burdens. One central repository, such as the commercial register, should suffice. New registry requirements should be eliminated.
- Disclosure Obligations for Sensitive Business Data: Under OECD regulations, tax authorities already exchange corporate financial and profit data. Requiring major family businesses to publicly disclose financial data, as proposed by public country-by-country reporting, would expose internal business strategies to competitors. The EU should abandon this initiative.
Pursuing Growth-Oriented Fiscal Policies
Creating a Competitive Tax System
No Investment Brake: Waiving the Wealth Tax
- Companies would have to reduce costs and investments to cover the increasing tax burden.
- Companies or business owners might increase distributions, which would come at the expense of reinvested profits. In family businesses, large parts of the profits or even the entire profit remain in the company to finance future growth. This would become more difficult.
- Companies might relocate abroad to reduce the tax burden. Foreign companies that are not subject to wealth taxation at their locations could take over business areas from German companies and relocate them to their own sites.
Reducing Location Burdens
Promoting Trade, Not Overloading Agreements
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