PdF on the economy

The PdF wants to lower the corporate income tax and replace the Gewerbesteuer (local trade tax) with a municipal surcharge. The platform says companies in Germany carry a much higher burden than the EU average.

Companies in Germany pay more tax than in many EU countries. The PdF wants to cut the tax on company profits. The local trade tax should go. Towns get a surcharge on another tax instead.

The corporate income tax rate would fall from 15 to 12 percent. Instead of the trade tax, municipalities would levy a surcharge on corporate income tax, which the platform says ends hidden double taxation while securing local finances. The tax burden would also be graduated by size and capacity: small firms could be largely exempt, while medium and large ones pay more. The party cites an effective burden of about 28.8 percent versus 18.8 percent on average in the EU.

The PdF wants to use targeted tax advantages to encourage companies to invest, do research and innovate. Key industries, small businesses and structurally weak regions are to get particular support.

The PdF wants to reward companies that invest and do research. These companies should pay less tax. Important industries and small firms get special help. Weaker regions should get support too.

Investment in machinery, digitalization and sustainable technology would earn a credit of 10 to 20 percent of costs, along with new depreciation options and higher research grants. Reinvested profits would be tax-free if they advance jobs, innovation, digitalization, energy savings or environmental protection. Sectors such as mechanical engineering, chemicals, automaking, IT and artificial intelligence would get tax breaks graduated by innovation and sustainability. The revenue threshold for the small-business VAT rule would rise from 22,000 to 50,000 euros. There are also benefits for job tickets, bike leasing and e-mobility; tax breaks could be tied to a commitment to stay in Germany.

The PdF wants to reduce the administrative burden on companies, including through a single point of contact for tax and regulatory matters. The platform argues that long approval procedures and complex tax requirements hold back innovation and competitiveness.

The PdF wants less paperwork for companies. Companies should deal with only one government office. Reports and applications should work online. This should save companies time and money.

The plan includes a "one-stop shop" that bundles companies' dealings with authorities. Tax filings and funding applications are to be automated and standardized on digital platforms. Small and medium-sized firms would get flat-rate depreciation rules for smaller investments to cut documentation work. Laws such as the Commercial Code would be updated so that electronic signatures, online shareholder meetings and fully digital reporting are possible everywhere. Digitalization and a more efficient administration are also meant to lower government spending.

The PdF wants to scrap funding programs it considers ineffective or that mainly benefit large corporations and lobby groups. The money freed up would go more toward innovation at small and medium-sized companies, especially in digitalization and climate protection.

The government gives companies funding. The PdF wants to end programs that do not work. More money should go to small and medium-sized companies. Digital technology and climate protection are the main goals.

The platform says many existing subsidies are inefficient and create no lasting value. Such programs would be identified and ended to free up room for more targeted support. The focus would be on small and medium-sized companies in digitalization and climate protection. Funding would be awarded under open, easy-to-understand criteria meant to prevent misuse.

The PdF wants a legal ban on manufacturers deliberately designing products to become unusable early. Manufacturers would also have to state how long a product is expected to last and whether it can be repaired.

Some companies build devices so that they break early. This is called planned obsolescence. The PdF wants to ban it. Companies should have to say how long a device lasts. Those who use poor materials on purpose should be punished.

As examples, the platform lists plastic gears instead of metal ones in household appliances, built-in smartphone batteries and electronics that cannot be repaired. It also includes software updates that deliberately slow down older devices. Besides the ban, a duty to disclose lifespan and repairability is planned. Anyone who knowingly uses inferior materials or manipulative software would face penalties.

The PdF wants to prohibit manipulative online design, known as dark patterns, and to monitor misleading price and product claims more closely. A central complaints office would help consumers report violations.

Some websites trick customers. One example is a fake countdown on special offers. The PdF wants to ban such tricks. Companies should have to prove their discounts. Customers should be able to report violations to one central office.

The platform's examples of dark patterns include fake countdown timers and consent forms that undermine privacy rights. Strict transparency rules would apply to online purchases and consent. Fake crossed-out prices, permanent sham sales and false promises about quality or function would be policed more closely. Companies would have to be able to back up discounts and quality claims. Instead of a new complaints office, existing consumer protection bodies could be given more powers.

The PdF supports trade that is as free as possible but wants trade agreements concluded only if they meet European environmental and social standards. It also wants to strengthen fair supply chains, intellectual property, and the fight against tax avoidance.

The PdF supports free trade. But trade deals should follow rules on the environment and social issues. A system like Fairtrade should promote fair trade. Patents and brands should be better protected. Tax loopholes should be closed.

Trade relations with countries that do not comply with human rights standards are to be critically examined. A support system modeled on Fairtrade is to back environmentally friendly and socially responsible supply chains and also serve development. Patents, trademarks, and copyrights are to be protected and product piracy fought. Together with other states, the PdF wants to close tax loopholes and bring more transparency to the financial sector. Customs violations in online retail are to be penalized, and sanctions should do more good than harm to the country imposing them.

The PdF wants to diversify trade so that the economy depends less on individual powers such as China. To that end, production in Europe is to be promoted, new markets opened up, and supply chains backed by the state.

The PdF wants less dependence on countries like China. Companies should make more goods in Europe. They should get tax breaks and subsidies for this. Germany should trade more with Africa and Southeast Asia. Weapons should also be bought and sold mainly within Europe.

Tax breaks and subsidies are meant to encourage companies to expand production capacity in Europe, especially in pharmaceuticals, electronics, and renewable energy. Partnerships with countries in Africa and Southeast Asia are to open new markets. A state crisis fund is to help companies with logistics bottlenecks, for example after natural disasters or sudden border closures. Arms imports and exports are to be handled primarily at the European level, and weapons and ammunition are to remain available in the event of a defense emergency.

The PdF wants to push through uniform Europe-wide size standards for clothing. Customers should then be able to pick the right size regardless of brand or manufacturer. This is meant to cut returns in online retail and ease the burden on retailers and the environment.

Clothing sizes differ from brand to brand today. So many people send back clothes they ordered. The PdF wants the same sizes across Europe. Then clothes will fit more often. That saves money and helps the environment.

The platform states that on average more than 40 percent of clothing ordered online is sent back, mostly because of wrong size or fit. Many buyers are said to order the same item in several sizes. The party lists the consequences as extra transport emissions, packaging waste, destruction of returned goods and costs that push up prices. Standardized sizes are meant to improve customer satisfaction and lower retailers' costs.