Social Reforms Endanger Jobs as Wealth‑Tax Debate Stalls
Politics

Social Reforms Endanger Jobs as Wealth‑Tax Debate Stalls

The German Trade Union Confederation (DGB) has charged the Union with shying away from the debate over reintroducing a wealth tax and reforming the inheritance tax.

“Politics are dragging their feet on a constitutionally compliant wealth tax, and the CDU portrays itself as a shield for the wealthy” said DGB board member Stefan Körzell in an interview with the “Neue Osnabrücker Zeitung” (noz). He warned that many employees will have to tighten their belts so much they can barely breathe, and that Germany’s discourse must also address those on the “sunny side” of the economy-high‑earning individuals and heirs.

Instead of engaging on these matters, Körzell claims that social gains are repeatedly called into question. “That brings no new orders to companies” he said, urging the Social Democratic Party (SPD) to take a stand. “We need a strong voice that argues back and says: Let’s hold employers accountable”. The DGB board further added that the exemptions granted to businesses under the inheritance tax are the largest item in the federal subsidy report, and that these should be eliminated.

If the wealth tax abolished in 1997 were reinstated, it would generate roughly €28 billion a year for state budgets. “That is money that could be invested in schools, kindergartens and roads” Körzell asserted. He dismissed accusations that the unions have become mere defenders of the status quo, insisting that workers are actively participating in shaping change within their companies. “However, we strongly reject the narrative that the crisis can be solved by attacking labour‑protection laws or cutting pensions” he added.