For years, German finance ministers dreaded the date when tax revenue estimates were announced.
With every forecast, experts revised their estimates downward, especially during Hans Eichel’s tenure from 1999 to 2005. In 2001, for example, tax revenues were projected to be about €530 billion ($590 billion) in 2005, but only €452 billion found its way into the treasury.
The tide turned a few years ago.
With more people employed and spending their earnings, tax revenues have been steadily rising. When The Working Party on Tax Revenue Forecasting, an independent advisory council of the Federal Ministry of Finance, begins three days of discussions on Tuesday in the southwest city of Saarbrücken, it won’t be a question of whether forecasts should be adjusted upward, but by how much.