A key figure within the Social Democratic Party (SPD) is continuing to advocate for income tax reform aimed at benefiting lower and middle-income earners, despite reservations expressed by Chancellor Friedrich Merz of the Christian Democratic Union (CDU) regarding its financial feasibility.
Dirk Wiese, the SPD’s parliamentary group manager, emphasized the urgency of reaching an agreement on tax relief for these income brackets. He stated the need for a solution in the near future, acknowledging Merz’s prior condition that any such reform would be contingent upon identifying sufficient funding.
Wiese countered that the reform is both necessary and financially viable, suggesting potential funding mechanisms. He proposed adjusting the top income tax rate and increasing taxes on very high earners to offset costs. This, he argued, would provide relief to skilled workers and individuals in demanding jobs within sectors like the chemical and automotive industries. He framed the suggestion as an open discussion point, noting that the CDU also prioritizes pursuing policies important to them through similar negotiation.
The SPD representative reaffirmed the party’s consistent commitment to a progressive taxation system where higher earners contribute more to the public good, describing it as a matter of fairness. He acknowledged that discussions with the CDU on this matter will likely be challenging, but stressed the importance of maintaining dialogue.
