Chancellor's Chief Open to Wealth Tax While Questioning Current High Income Tax Rates
Politics

Chancellor’s Chief Open to Wealth Tax While Questioning Current High Income Tax Rates

Thorsten Frei, the CDU head of the Chancellery, stated that he is fundamentally open to considering higher taxation on extremely high incomes, calling the proposed “wealth tax” an option for the very top earners, adding that people should seriously consider what can be done in that area. However, he also highlighted the disproportionate contribution of the highest earners, pointing out that the top 10 percent of wage earners generate more than 50 percent of the tax revenue, arguing that this contribution should not be overlooked.

Frei also criticized the current top tax rate structure, claiming it takes effect too early. He noted that the rate currently impacts taxpayers with an income of roughly €70,000 for single individuals. This would strain not only the highest earners but also “contributors to society” a situation he deemed premature.

Overall, however, Frei remains opposed to tax increases affecting labor income, stating, “I am not convinced that we need higher taxes in Germany”. Despite this general opposition, he advocated for open-minded discussions regarding the potential solutions, arguing that “it makes no sense to state upfront what is not possible”. His focus remains on finding an ultimately “fair and affordable” resolution.