06:39 GMT14 August 2020
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    The German government has proposed a series of tax cuts to prevent an economic recession. Is this the first sign of Europe’s strongest economy beginning to shrink?

    Sputnik spoke with Ray Kinsella, Professor of Banking, Financial Services, and Healthcare at UCD for more insight on the issue.

    Sputnik: Why has the German economic minister suggested cutting taxes?

    Ray Kinsella: The German economy came through austerity really well, but there is evidence of a slowdown in growth across Europe and in Germany.

    My own take is that the German finance minister and Chancellor are currently in a very vulnerable political position, and I think they are looking to regain economic traction.

    Sputnik: How should countries set tax rates?

    Ray Kinsella: There are two things. What’s right for the economy and what’s right for Europe and what’s right in the social sense. There is a lot of evidence of inequality across Europe and my own view, is that those kinds of inequalities can’t just be put to one side.

    I think you have to have taxes that reflect the needs of society and to balance that with the competitiveness in Europe.

    Ireland’s big driver is its corporation tax rate, but I think all countries in Europe are having to look at this in a post Brexit world, where there is evidence of Europe slowing down and one of the ways to mitigate against that is to look at taxation.

    Views and opinions expressed in this article are those of Ray Kinsella and do not necessarily reflect those of Sputnik.

    The views and opinions expressed in the article do not necessarily reflect those of Sputnik.


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    economy, recession, tax cuts, Brexit, Ray Kinsella, EU, Germany
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