Reiner Holznagel, president of the Federal Taxpayers’ Association, defended his announced lawsuit against the “Active Retirement” scheme. He told the news portal T‑Online that it is understandable to encourage people to work longer, but Germany, he argued, retires earlier than most other countries, leading to a loss of valuable expertise.
Holznagel’s main criticism is the scheme’s design. “Active retirement violates the principle of equal treatment because self‑employed and freelance workers are excluded” he said. He insists that, if the measure is implemented, it must apply across the board and not just to certain groups. In particular, small business owners in rural areas could benefit, as many are on the verge of shutting down and lack successors.
He also pointed out broader problems with the tax system. “Our income tax system punishes additional work” Holznagel remarked. The steep progressive scale often makes extra labor unprofitable, so many people trade extra hours for leisure time. “This isn’t malicious; it’s a rational reaction to a broken tax scheme”.
According to Holznagel, the state must act so that every euro earned feels as valuable as the first. He highlighted the proposed adjustment that would delay the application of the top tax rate, a change he notes mainly relieves middle‑income earners. From the taxpayers’ group’s perspective, reforms should go further:
” The 42 % top rate should kick in only when taxable income exceeds €100,000, rather than the roughly €80,000 threshold the Union had suggested.
” The highest rate of 45 % should be increased to 48 % and applied only when taxable income reaches €1 million or more.
Holznagel warned that fully offsetting the tax burden for small and middle‑income households with higher rates on the wealthy is unrealistic. “That would require rates of 70 % or more” he said. He summed up his position: “If you want genuine tax relief, you must accept that the state will collect less revenue”.
