The Social Democratic Party (SPD) is proposing that the wealth tax rate be increased and potentially applied sooner, while strongly opposing the complete abolition of the Solidarity Levy (Soli). SPD General Secretary Tim Klüssendorf told “Stern” that he believes the wealth tax rate must increase by at least two percentage points and might need to take effect earlier than anticipated, stating that such an increase is “overdue”.
Earlier, CDU leader Friedrich Merz also signaled openness to escalating wealth taxation, but only provided it was conditional. Speaking to “Spiegel”, Merz suggested that an increased tax rate would be acceptable if the upper tax bracket could be smoothed out and the Solidarity Levy abolished. “Eventually, that will have to happen” he stated. “We should do it before the Federal Constitutional Court forces us to”. It is noted that the Solidarity Levy has already been abolished for ninety percent of taxpayers.
Despite the calls for abolishing the levy, Klüssendorf firmly rejected the notion of a complete removal of the Solidarity Levy. He argued that doing so would be “deeply unjust” as it would instantly create a tax hole of nearly 13 billion euros annually. He explained that this gap would then be filled by small and medium incomes, considering the levy is currently only paid by individuals in the highest tax bracket.
The SPD maintained its insistence on significant financial relief for small and medium incomes, amounting to several hundred Euros per year-a guarantee previously made by Finance Minister Lars Klingbeil. Klüssendorf confirmed that these promises were based on an agreement, but warned that this relief is only sustainable if the highest earners also contribute adequately. Minister Klingbeil is expected to present a financial proposal shortly that also ensures viability. The consensus among the party leadership remains that a tax redistribution from the very top earners down to the lower brackets is necessary, which, in turn, requires raising the wealth tax.
