The debate surrounding inheritance tax in Germany should cease, according to Hesse’s Minister President, Boris Rhein. Speaking to the Bayern Media Group, Rhein cautioned that raising taxes, particularly during times of economic challenge, poses a risk to the nation’s competitiveness. He argued that while tax increases may initially generate higher revenue, they ultimately stifle growth and can lead to a decrease in overall tax income. Rhein emphasized the uncertainty created by the current inheritance tax discussions, highlighting the complexities of the existing system and its potential impact on generational transitions within family-owned businesses.
Furthermore, Minister President Rhein advocated for a stimulus package linked to the substantial investments being made in defense. He stated that these billions allocated for military expenditure should be directed to create a combined combat readiness and stimulus package specifically benefiting German companies. Rhein proposed a “Germany Guarantee” to prioritize domestic firms in military procurement, ensuring that these significant investments contribute to value creation and bolster the nation’s economic strength.
He stressed the interconnectedness of national security, sovereignty and industrial policy, calling for investment in areas such as drone production and infrastructure resilience alongside direct orders for Germany’s defense industry. The overarching goal, according to Rhein, is to leverage this increased funding to enhance both security and economic value within Germany.
