The Social Democratic Party’s (SPD) proposed overhaul of inheritance tax laws is facing a potential constitutional challenge, according to prominent tax law expert Hanno Kube. Speaking to the Handelsblatt, Kube, a professor at Heidelberg University, voiced concerns that the SPD’s plan to significantly reduce the role of familial relationships in determining inheritance tax rates could violate Germany’s Basic Law.
The core of the criticism centers around Article 6 of the Grundgesetz, which guarantees the protection of the family. Kube argues this protection inherently extends to inheritance matters and necessitates a nuanced differentiation based on kinship. The SPD’s concept, which seeks to consolidate existing tax brackets categorized by familial ties into a single, unified system, risks undermining this constitutional provision. The proposal’s diminished distinction between close family members and more distant relatives is the primary source of concern.
Kube emphasizes that the Grundgesetz itself acknowledges varying degrees of familial closeness and that Article 6 also provides specific protections for marriage. He dismissed the notion of a simplistic “family is family” approach, arguing that the legal framework must recognize the diverse nature of familial relationships.
The SPD’s motivation appears to be a move towards greater fairness and simplification of the inheritance tax system. However, critics, including Kube, contend that the ambition to broaden the tax base and reduce inherited wealth could come at a significant constitutional cost. The potential legal challenge highlights a growing tension between the government’s desire for fiscal reform and the fundamental principles enshrined in Germany’s Basic Law, prompting a crucial debate on the balance between social equity and individual rights. This situation places substantial political pressure on the SPD to reconsider aspects of the proposed legislation or face a protracted and potentially unsuccessful legal battle.
