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Great Moments in German Tax Enforcement

Great Moments in German Tax Enforcement

Posted on March 3, 2019 by Dan Mitchell

Germany is like the Nordic nations.

It gets a decent ranking (#20) for overall economic freedom, but mostly because a bad score for fiscal policy is offset by reasonably good scores in other policy areas.

Taking a closer look at fiscal policy, there’s a heavy burden of government spending (not as bad as France, for what it’s worth) and taxes consume a big chunk of household income.

And the Germans are big believers in enforcing onerous tax laws. Sometimes in remarkable ways.

  • Using parking meters to levy taxes on the services of prostitutes.
  • Losing 30€ for every 1€ collected by taxing online sales of coffee.
  • Imposing a new development tax for an 80-year old street
  • Levying a fine on a one-armed man for having a one-handled bicycle.

To be fair, the last example is a penalty rather than a tax, but it’s included because it captures Germany’s über-zealous approach to enforcement.

Today, we’re going to add to this list by looking at what happens to taxpayers when they can’t afford their country’s onerous tax burden.

One of the consequences, as reported by the BBC, is that you can lose the family pooch.

A town in Germany has made headlines for seizing a family’s dog over unpaid taxes – and then selling it on eBay. German media report that officials in Ahlen initially wanted to seize the wheelchair of a disabled resident as the most valuable item on the premises. Instead, they settled on a pedigree pug bitch named Edda. One of the officials then listed the dog on eBay at an apparent bargain price of €750 – half of what its new owner expected to pay. …Edda’s new owner was Michaela Jordan, a police officer, who told the newspaper she was initially suspicious of the low price. Upon calling the number listed in the advert, she spoke to an employee of Ahlen’s administration, who explained that the dog had been seized because the owner owed the city money – including for unpaid dog tax. …the former owner said…her three children miss the dog.

I feel sorry for the kids.

Though, to look on the bright side, they learned a lesson about big government. I’m guessing they are now immune to the European Commission’s attempt to brainwash children in favor of higher taxes.

And I guess we should all be happy that the tax police didn’t seize the wheelchair (maybe they were inspired by Francois the Merciful?).

In any event, I also noticed that the dog’s new owner is a bureaucrat – i.e., a net tax consumer rather than a net tax payer. There’s probably a lesson there as well.

Though even bureaucrats should be careful when dealing with government.

Edda had medical problems that were not disclosed. Since changing owners in December, she has needed four operations due to eye problems, including an emergency operation over Christmas. …totaling about €1,800.

The bottom line is that Germans are over-taxed and they have tax collectors that go above and beyond the call of duty.

Ideally, the nation’s taxpayers will get angry, have their version of the Tea Party, and elect some better politicians. Until that happens, I recommend they copy the clever tax-avoidance tactics of their French, Spanish, Irish, and Austrian neighbors.

P.S. You won’t be surprised to learn that Germany’s surtax to finance reunification is still being imposed even though East Germany was aborbed almost three decades ago (though it took more than 100 years for Washington to repeal the “temporary” telephone tax to finance the Spanish-American War).

P.P.S. Germany needs another Ludwig Erhard.

———
Image credit: betexion | Pixabay License.


Germany Taxation
March 3, 2019
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

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