I Love You, You Big Dummy

Come to Berlin Country! Come to where the City Tax is!

City Tax

The city of Berlin loves youz tourists, honest it does. Sort of. In fact, the local yokel politicians here love youz guys so much that they feel the pressing need to show you just how much that is. And it’s a full 15 percent more than any of you out there were expecting. And that’s 15 percent more for getting absolutely nothing in return!

That’s right. Starting next month you will be permitted to pay an additional 15 percent City Tax on top of your hotel room bill here, at no extra cost to them and absolutely not free of charge for you! Now that’s what I call big City Tax hospitality!

I love you, you big dummy. You big dumb tourist. Book your flight to Berlin now!

“Es ist absolut nicht rechtssicher und wird ein bürokratisches Verwaltungsmonster sein.”

German Word Of The Day: Zwangsumlage

Zwangs- = compulsory. Umlage = levy, share in the costs. Put those two together and what do you get? Forced to share. But we’re talking about money here folks so let’s  just call it another tax and get it over with already.

Strom

This latest planned tax consists of forcing German households to purchase so-called “smart meters” or modern electricity meters that are supposed to regulate energy consumption by drawing electricity from that so wonderfully green German energy grid whenever this energy is cheaper. You know, like when hell freezes over?

This will only set back German consumers another 70 or 80 euros after already having been hit with a seven percent energy bill increase planned for next year, too (the seven can and will change, of course, and we all now in which direction it will be going).

Turn it around as much as you want. Anyway you turn this German energy turnaround around, you’ll always get the same result. Once you’ve turned it around, I mean. She is like way too expensive, señor.

But what can you expect from a government that is about to go retro and way back in the Wayback Machine to the good old days of SPD Never-Never Land again?

“Verbraucher sollten mit attraktiven Angeboten überzeugt, statt mit immer mehr ordnungsrechtlichen Einbaupflichten gezwungen werden.”

PS: The next German word of the day will be Abzocke. Here’s a tip: It means rip-off.

Taxing Nuclear Fuel Rods That Aren’t Being Used?

You can never be too rich or too thin, I guess. And if you’re Germany, you can never tax too much, either.

Taxation

Germany’s biggest utilities, still reeling from the country’s early exit from nuclear power, scored a major victory Tuesday when a Hamburg court said the national tax on nuclear fuel rods may violate European law.

The Hamburg finance court said it “cannot assess beyond any doubt” whether the tax on nuclear fuel used for electricity generation complies with European law. It will now ask the European Court of Justice to decide whether the levy conforms with rules that prohibit member states from creating new taxes on electricity for “general budget financing purposes.”

The tax was introduced at the beginning of 2011 and came as part of an extension of nuclear reactors’ operating lives that the government had agreed on. However, the nuclear disaster at Japan’s Fukushima power plant in March of that year triggered a U-turn in German energy policy, with Chancellor Angela Merkel ordering the immediate shutdown of the oldest plants and the early phaseout of nuclear energy by 2022. Out of 17 reactors that were in operation in March 2011, only nine are still producing power. But the fuel-rod tax remains in place, to the utilities’ annoyance.

Das Hamburger Finanzgericht will vom Europäischen Gerichtshof (EuGH) in Luxemburg zentrale Fragen zur umstrittenen Brennelementesteuer klären lassen.

Debacle, Disaster, Fiasco…

Just a reminder here again: “There is no free lunch.” Honest.

Lunch

Government intervention at its best (again). Germany’s deliberate attempt to make its energy greener using price guarantees and mandatory quotas for green energy IS NOT WORKING.

Try and remember: The whole idea was to make renewable energy more competitive and, therefore, in the end, cheaper. Well this attempt is so not working right now that German consumers pay higher prices now than ever before and German industry is soon to follow. And this, even though there is actually an oversupply of power. In essence, an energy bubble has been created because Germany’s renewable energy producers get a guaranteed minimum price for what they produce (this now includes farmers and communities and anybody else who can still get into the ponzi scheme).

Imagine you have various consumers going to a grocery store. Some of them want to buy a bottle of beer for 1 USD. Others would like to buy a bottle of champagne for 30 USD. In normal life people would just pay 1 USD for the beer and bubble-lovers would pay 30 USD for champagne. The German energy market is different. People who want the champagne pay 2 USD for it and those who want beer have to pay 2 USD. It’s a good deal for the champagne drinkers, getting subsidized by the beer buyers.

…Perhaps the least fair part of the whole scheme is how these prices disproportionately impact low-income households, who are forced to subsidize green energy for richer families to support politicians’ green energy visions.

Time To Say Goodbye

To “clean power rebates” for German industry, that is.

Germany collects surcharges from power users to help fund operators of solar and wind power installations. Heavy electricity users such as cement, steel and some chemical plants are exempt to keep them from being priced out of the global market.

Industry

The EU now wants to change this. And that should make almost everybody happy. Now many of these German industries will get priced out of the market or maybe moving their production facilities to other countries altogether.

MEHR ALS DIE HÄLFTE DES INDUSTRIESTROMS VON UMLAGE BEFREIT

PS: Grid nationalisation in Berlin? Close but no cigar. Nice try but now you’ll just have to grid and bear it.

Franz-Peter Tebartz-van Bling

I mean Tebartz-van Elst, of course.

Bling

“I got your church and state for ya right here, pal.”

What’s all the excitement about? Religious Germans contribute freely to their churches. It’s not as if the money this guy burned had been levied by taxation or anything. Uh, wait a second. OK. So I guess it had been.

Germany separates church and state much less clearly than does America but more explicitly than Anglican Britain or Orthodox Greece. Its post-war constitution, in a clause carried over verbatim from the Weimar constitution of 1919, favours no particular faith but lets all churches levy taxes on their members through the income-tax system (8% or 9% of a taxpayer’s bill, depending on the state).

Whoopee! The Electricity Prices Are Going Up Again!

Seven percent in the coming year! For starters.

Strom

Hot dog. And all because of the The German Renewable Energy Act.

And this act kind of goes like this: Every kilowatt-hour that is generated from renewable energy facilities receives a fixed feed-in tariff. Renewable energy plant operators receive a 20 year, technology specific, guaranteed payment for their produced electricity. Anyone who produces renewable energy can now sell his ‘product’ for a 20-year fixed price.

And who pays this tariff? You guessed it.

Die EEG-Umlage steigt im kommenden Jahr voraussichtlich um einen Cent je Kilowattstunde.

The Big Green Machine She Is Broken

Wah? The “energy turnaround” is going to be expensive as hell? Raising taxes? Veggie Day? And the hits keep on coming. I’d ignore the polls these days too if I were a greenie.

Green

The Greens have been consistently bleeding support ever since the spring of 2011. Along the way, they have achieved a few notable successes in state elections, but the trend has been a downward one for over two years. It is as if the German electorate has suddenly decided that the party is no longer needed.

“Der Wahlkampf mit den Rezepten, wie man Kohlrouladen herstellt, ist zu Ende.”

Green Logic

This is how you save the world (from Climate Change).

Energy

German consumers already pay the highest electricity prices in Europe. So it follows, then, that the prices Germans pay for electricity need to be increased.

That is why a turnaround must be introduced – the infamous Energiewende or “energy turnaround” – with which, for instance, a renewable energy surcharge is levied that increases every consumer’s electricity bill from 5.3 cents today to between 6.2 and 6.5 cents per kilowatt hour — a 20-percent price hike. For starters, of course.

You see, this way everybody is happy because every single one of us then feels painfully, on a day-to-day basis, just how much he or she is pulling his or her own CO2 weight, all for the good of mankind, not to mention Planet Earth. And Mother Nature too, of course. Whoever she is.

In the near future, an average three-person household will spend about €90 a month for electricity. That’s about twice as much as in 2000.

Greens Loudly Denounce Disastrous Legislative Blunder Made By Awful German Government Coalition Currently In Power

Only this blunder was made by the Greens themselves during the Red-Green coalition government reign back in 2005.

Green

Hard to believe really, but their 328-page election program “Time for Green Change” actually denounces as “a fatal policy change” the legislation they themselves introduced that increased the percentage of what employees have to pay for their share of the statutory health insurance here (employers pay the rest).

Well, I suppose it is better to realize one’s mistakes late than never and all that, but I’m not sure if that is really what was intended here.

If it wasn’t for Schadenfreude, I wouldn’t have no Freude at all.

“Bei all den erhobenen Zeigefingern gegenüber den anderen scheint kein Finger mehr für saubere Recherche im eigenen Laden frei gewesen zu sein.”