The Social Democratic Party (SPD) is preparing to initiate discussions regarding increased taxation on substantial inheritances, following remarks by the parliamentary group leader of the Christian Democratic Union (CDU), Jens Spahn, who acknowledged the issue of unequal wealth distribution. SPD parliamentary group deputy Wiebke Esdar stated that the current system places a disproportionate tax burden on smaller inheritances compared to the comparatively small portion of billions-sized inheritances that are subject to taxation in Germany.
The SPD’s proposals extend beyond inheritance tax, with a focus on strengthening measures against tax evasion and loopholes. Esdar emphasized a desire for a “factual and calm” dialogue with the CDU/CSU’s finance and budgetary policymakers, expressing optimism that a constructive solution can be found given Spahn’s recognition of the problem.
The SPD’s objective is to ensure that “extremely wealthy individuals in our society assume more responsibility for the common good”. The planned inheritance tax reform is specifically targeted at very large estates.
Spahn’s acknowledgment of the unequal distribution of wealth marks a departure from previous positions and potentially reflects consideration of an upcoming ruling by the Federal Constitutional Court regarding inheritance tax.
Recent data from the Federal Ministry of Finance reveals that over half of large inheritances and gifts, exceeding a value of €100 million, have remained tax-free in Germany over the past decade.
Janine Wissler, parliamentary group deputy for the Left Party, welcomed Spahn’s comments as “long overdue” arguing that the increasing number of billionaires and the significant disparities in wealth should be a concern even for conservative parties. However, she stressed that action is required, urging Spahn to develop “concrete proposals” for achieving greater fairness.
