In a dispute over an income‑tax relief, a new clash is emerging between the Union and the SPD.
Sebastian Roloff, the SPD’s economic‑policy spokesperson, welcomed a movement on the part of the CDU, but he insists on higher contributions from top earners and opposes the proposed reforms to the Citizens’ Basic Income.
Roloff told the “Handelsblatt” (Monday edition) that it was “very welcome that the CDU now sees the need for action on the income tax”. He argues that a “crucial relief for lower and middle incomes” would boost purchasing power, demand, and thus growth.
Carsten Linnemann, CDU general secretary, had suggested raising the threshold for the top tax rate from about €68,000 in annual gross income to €80,000. The aim would be to flatten what he calls the “Mittelstandsbauch” (the rise of the middle‑income tax band). Linnemann targets implementation by the middle of the current legislative period.
Roloff says a shift in the threshold is possible in principle-but only as part of a broader package. “Shifting the top‑rate threshold as part of a measures package can be sensible for middle incomes” he noted. He added, however, that “top incomes must still contribute more than they do now-through a higher top rate for the highest earners”.
He also rejected Linnemann’s proposal to tighten earnings rules in the upcoming Citizens’ Basic Income reform. “The suggestion to deduct additional income from the basic income is not sound and would reduce the number of hours worked” Roloff said. “Instead, incentives are needed to encourage people to work more, if possible”.
