“Merz’ calculation doesn’t add up”
Lindner opposes a higher top tax rate
9/4/2023 1:13 am
With his push for a higher top tax rate, Friedrich Merz quickly convinced the SPD. But the FDP boss is not very enthusiastic about the black and red alliance. Lindner also accuses Merz of having miscalculated.
Finance Minister Christian Lindner has clearly rejected the CDU proposal for a reform of the top tax rate. “We have to get along better with the existing money and shouldn’t think about increases,” said the FDP leader in the ARD “Report from Berlin”. He maintains that the burden should be reduced rather than increased.
At the weekend, CDU leader Friedrich Merz brought up the idea that the top tax rate would only come into effect from a higher income and could therefore be increased. “Mr. Merz’s calculation doesn’t add up,” said Lindner. 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 by the way, it would also be unfair: having to give more of what you have earned to the state than you are allowed to keep has nothing to do with a social market economy.”
The CDU boss 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 that If the top tax rate is then 42 or 45 percent, it doesn’t matter.” It is important to relieve the middle class, argued Merz.
Linnemann for major tax reform
CDU General Secretary Carsten Linnemann also agreed and said it was simply not fair for the middle class to pay the top tax rate. “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 center 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.
SPD General Secretary Kevin Kühnert also spoke out in favor of a reform of the top tax rate: “The SPD is fighting for income tax reform to be 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 The top tax rate would therefore only apply to significantly higher incomes than has been the case so far,” he told the “Tagesspiegel”.