Linnemann and Merz open
CDU makes friends with a higher top tax rate
9/3/2023, 7:28 p.m
A few months ago, CDU circles came up with the idea of raising the top tax rate in order to relieve the burden on a large scale. Now the party leadership around Linnemann and Merz is taking this up. The Secretary-General considers the debate to be overdue.
CDU General Secretary Carsten Linnemann has spoken out in favor of a major tax reform in Germany. Linnemann told the German Press Agency: “Meanwhile, the middle class pays the top tax rate, that’s simply not fair. Fueled by the high inflation rates, tax justice in Germany is getting into trouble. The central element of this tax reform must be broad relief for the middle of this country. “
Germany “urgently” needs a major tax reform. For this, the so-called middle-class belly must first be flattened. The top tax rate should take effect much later than around 63,000 euros. If it were only raised at 80,000, 90,000 or 100,000 euros, there would be relief for the broad middle of this country, said Linnemann. Then it would also be completely irrelevant whether the so-called “wealthy tax rate” was 45 percent or 46 percent or 47 percent.
“Because with such a reform, even very high incomes would be less relieved, but also benefit. Only a very few top earners in the millions would be burdened slightly more. I would like to have a big tax debate, because it is overdue,” said Linnemann. The “wealthy tax” takes effect from a taxable income of around 280,000 euros.
Merz also considers the top tax rate to be “not decisive”
CDU leader Friedrich Merz told the “Frankfurter Allgemeine Sunday newspaper”: “Even people who earn just a little more than average experience an enormous burden from duties and taxes. We have to flatten the burden curve, because performance has to pay off. Whether If the top tax rate is then 42 or 45 percent, it doesn’t matter.” Relief for the middle class is important.
SPD General Secretary Kevin Kühnert told the “Tagesspiegel”: “The SPD is fighting to reform income tax in a way that is revenue-neutral. We want to relieve 95 percent of employees in the state and, in return, moderately increase the top tax rate for the top five percent with significantly higher incomes than has been the case up to now.”
Finance Minister Christian Lindner clearly rejected the CDU proposal for a reform of the top tax rate. “Mr. Merz’s calculation doesn’t add up,” said FDP boss Lindner on ARD. The Minister of Finance calculated that the top tax rate would have to be increased from the current 42 percent to 57 percent if it were only to apply from an income of 80,000 euros. It currently takes effect from an income of 63,000 euros. “That would really strangle our economic development,” said Lindner. “And it would also be unfair: having to give more of what you have worked to the state than you are allowed to keep has nothing to do with a social market economy.”