BERLIN (AP) — Germany's government is reporting another healthy rise in its tax take as low unemployment in Europe's biggest economy boosts income tax receipts.
The Finance Ministry said Thursday that the federal and state governments raked in 42.45 billion euros ($56.8 billion) in May — 5.4 percent more than a year earlier. Germans paid 11.83 billion euros in income tax, an 8 percent increase.
Germany's unemployment rate stood at 6.8 percent in May. That contrasts with rates of more than 20 percent in the countries worst-hit by Europe's debt crisis. Chancellor Angela Merkel has argued that forecasts of higher tax income mean Germany can afford to spend more. She's pledging to increase tax breaks for people with children and adjust pensions as she seeks a third term in September elections.