Freie Wähler on finance and taxes

The Free Voters demand that the federal and state governments cover the cost of tasks they assign to municipalities. The platform criticizes that municipalities keep receiving more duties without financial compensation.

The federal and state governments often give towns new tasks. The Free Voters want this: whoever hands over a task also pays for it. This is called the connexity principle. Towns should not be left with the costs.

According to the platform, municipalities are losing room to act on their own while the federal and state governments impose extra duties without reimbursing the cost. Rising social spending in particular hits municipalities with no way for them to get relief. For citizens, the result is said to be cuts in services and higher fees. Municipalities should therefore not merely carry out federal policy but get more freedom and adequate funds.

The Free Voters want to reduce the number of funding programs and fundamentally reorganize Saxony's funding policy. The platform speaks of an uncontrolled sprawl of subsidies and calls for clear responsibilities, simple applications and transparent conditions.

Saxony has a great many funding programs. The Free Voters want fewer of them. Applications should become easier. Everyone should understand what the money is for. The money saved should go to the towns.

Saxony is to get a funding strategy that applies across all ministries and provides for a manageable set of programs. Funding should follow clear political goals, set incentives, and avoid dependency and windfall effects. The party rejects programs that are not geared toward sustainability. There should be fewer approving agencies, and the savings from the cutback should flow to municipalities. Small municipalities under 5,000 residents are to receive a much higher base amount they can spend freely. Funding should be project-based, open to all municipalities, and not a substitute for missing own revenue.

The Free Voters want municipalities and counties to keep a much larger share of Saxony's taxes and revenue. To that end, the fiscal equalization law is to be rewritten, because the platform sees municipalities as systematically underfunded for years.

The Free Voters say towns in Saxony have too little money. They should keep a bigger share of the taxes. A law is to be rewritten for this. Towns should decide about their own money.

The platform cites the right of municipalities to manage local affairs themselves and says this right is not realized in practice in Saxony. The party rejects short-term rescue packages and instead calls for new rules on funding levels and distribution in municipal fiscal equalization. Municipalities should get a budget they are responsible for and be able to meet their obligations without more debt. The new system should also allow lower local business tax rates and tax competition among municipalities. After the property tax reform, local rates are to be set so that total revenue stays the same. For fiscal equalization among the states, the party calls for transparency and project-based use of funds.

The Free Voters commit to the debt brake and to careful use of taxpayer money. Fiscal policy in Saxony is to become more sustainable at every level.

The Free Voters want to be careful with tax money. The state should keep the debt brake. That is a rule: the state may take on only a little new debt.

The platform calls the considered use of public money an obligation for the party. Thrift and cost-effectiveness are to apply as a principle at all times. Everyone who receives state funds should handle them responsibly and without abuse. From this the party concludes that the debt brake should generally be respected in all plans.

The Free Voters want to strengthen the tax administration. This is meant to let the state act more firmly against people and companies that do not pay their taxes properly.

Some people do not pay their taxes correctly. The Free Voters want to strengthen the tax offices. The offices should be better able to pursue such cases.

The demand is part of the party's list for sound public finances. There it complements the commitment to thrift and to adequate funding for municipalities. The aim is tougher action on tax violations.