Germany shows California the way

German lawmakers passed an $18.6 billion tax cut yesterday. The tax cut is a key element of Schroeder’s economic reform agenda, which also includes an easing of job protection rules and changes to increase pressure on long-term jobless to take work. Schroeder said the changes would make Germany a more attractive place to invest and quiet talk of “the German disease” – code for Germany’s inability to trim the expensive welfare-state programs and lower taxes and labor costs.