The CDU-affiliated interest group, the Wirtschaftsrat der CDU, has urged the federal government to accelerate the planned income tax reform. According to Astrid Hamker, the chairwoman of the Wirtschaftsrat der CDU, this tax relief should ideally be implemented within this year, given the current economic situation of many companies. Furthermore, they advocate for bringing forward the planned reduction of corporate taxes.
Currently, the federal government intends to implement the income tax reform on January 1, 2027. The coalition agreement between the Union and the SPD stipulated that they would lower income taxes for small and medium-sized businesses by the middle of the current legislative period.
However, tax rate reductions in the lower income brackets inadvertently benefit high earners as well. Given this concern, the SPD advocates for increasing taxation on high incomes to mitigate potential revenue losses resulting from rate cuts. Conversely, certain factions within the CDU argue against this approach or demand the complete elimination of the Solidarity Surcharge, which currently applies only to high earners.
