Linke on finance and taxes

The Left wants to give municipalities better funding and further develop the municipal fiscal equalization system. At federal level, it calls for a separate chamber for municipalities, a higher share of tax revenue and a reform of the local business tax.

The Left wants to give towns and cities more money. They should get a bigger share of taxes. There should be a separate body for municipalities at federal level. Municipalities should decide more for themselves.

Municipalities are to be funded so solidly that aid programs outside the equalization system become unnecessary. A differentiated county levy is to prevent larger cities from paying twice for county tasks. A third federal chamber alongside the Bundestag and Bundesrat is to represent municipalities. Mergers of municipalities are to remain voluntary and be supported. Laws are to be reviewed and unnecessary standards that restrict local self-government removed.

The Left wants projects to be funded as a rule for three to five years instead of one. This is meant to give project organizers planning certainty and reduce the state's administrative burden. The state budget is also to be passed on time each year.

Many projects now get state money for only one year. The Left wants to change that. Projects should mostly get money for three to five years. That way the organizers can plan better. Organizers are the clubs and groups behind a project.

According to the platform, one-year grants create uncertainty for organizers and a lot of paperwork for the state. This mainly affects projects in democracy, education, migration, social affairs and health. The party wants to create solutions in budget law, lower the required own contribution where needed and allow additional regional funding. Decisions on projects would be communicated early and transparently. The party also stresses that the budget for the following year must be in place on time and must not be blocked by threats of a period without a budget.

The Left wants to replace the debt brake, which it regards as an obstacle to investment. Investment in public facilities should also be financeable through borrowing. In the party's view, postponing such investment burdens future generations more than new debt does.

The debt brake limits new government debt. The Left wants to replace it with other rules. The state should be allowed to borrow for investments. Examples are schools, hospitals, and buses and trains. The party says later generations suffer without this money.

The platform lists hospitals, daycare centers, schools, universities, public transit, energy supply and business structure as areas for investment. The party argues that inflation, and with it yearly cost increases, is well above interest rates. Forgoing loans for asset-building investment therefore brings less relief than the harm done by suspending the investment. Fiscal and budget policy is meant to secure equal participation and comparable living conditions, which the party says requires adequately funded public services.