American progressives say they want the US to be more like Europe, and here’s their chance: this week, Berlin unveiled a series of energy tax cuts to ease the sting of rapidly escalating inflation. It is a useful contrast to the Democrats’ current plan to raise taxes as an inflation cure.
Unfortunately, Berlin has not seen the light of day in the tax cuts on the supply side, so the measures announced recently mean tipping around the edges rather than the major tax reform that Germany needs. But every bite helps. One proposal increases the tax deduction for individuals by about 3%, making the first € 10,347 ($ 10,900) of annual income tax-free.