Merkel's program announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts and that more stimulus is needed to end the recession. By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households. | Merkel's program announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts and that more stimulus is needed to end the recession. By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households. |