A prominent voice within the Christian Democratic Union (CDU) is publicly urging a re-evaluation of the party’s stance on inheritance tax, signaling a potential shift in policy debate and highlighting internal divisions over economic fairness. Dennis Radtke, head of the CDU’s worker’s association, argues that the party’s disproportionate focus on welfare benefit reforms-specifically the controversial Bürgergeld-has obscured significant shortcomings in the tax system.
In an interview with the Tagesspiegel newspaper, Radtke stated that the CDU risks appearing overly selective in its pursuit of equitable policies. He specifically criticized the substantial sums the state knowingly forfeits through existing loopholes in inheritance tax regulations, referring to it as a deliberate and unacceptable loss of revenue.
While acknowledging the party’s concerns regarding the potential impact of inheritance tax on small and medium-sized enterprises (SMEs), Radtke sharply differentiated between the transfer of family-run businesses and the passage of vast fortunes. He emphasizes the distinction lies within a mechanism known as the “dependency allowance review” which he argues currently enables the transfer of billions in wealth, rather than safeguarding the viability of SMEs.
The Social Democratic Party’s (SPD) recently proposed inheritance tax reform has been dismissed by Radtke as misguided, accusing the SPD of a continued bias towards burdening the SME sector. Radtke’s core objective, he insists, is to close these existing tax loopholes.
Internal CDU warnings suggesting that inheritance tax reforms would negatively impact the Mittelstand (German SMEs) have been countered by Radtke’s blunt assessment. He suggests scenarios involving the inheritance of thousands of residential units or the transfer of billion-dollar assets without any tax liability have absolutely no relevance to the challenges faced by the Mittelstand. Radtke’s provocative analogy – questioning whether such inheritors qualify as belonging to the Mittelstand-places him at odds with party leader Friedrich Merz and implicitly challenges the prevailing narrative concerning economic fairness and the protection of small businesses. The comments expose a growing tension within the CDU regarding how best to address issues of wealth distribution and social justice.
