The CDU faction leader, Jens Spahn, appealed to Finance Minister Lars Klingbeil (SPD), urging him not to reveal a proposal for income tax reform to the public without prior coordination. Speaking to the “Rheinische Post” (Friday edition), Spahn suggested that the CDU and the SPD should jointly develop a proposal and present it together. “This would prevent public disputes. We agree on the goal: to relieve smaller and middle incomes so that people have more financial freedom” Spahn stated. This suggestion came after Klingbeil had announced on Thursday that his ministry would shortly submit a proposal. Spahn further argued that it was impossible to “burden people by five percent just to relieve 95 percent”. The CDU politician added that this would eliminate “extremely high tax rates of 60 percent”.
Consequently, Spahn asserted that a “counter-financing outside the tax system” would be necessary to achieve the bulk of the relief. The CDU’s fundamental requirements were clear: the top tax rate should be implemented later in order to ease the burden on smaller and middle incomes and prevent overtime earnings from quickly falling under the top rate. Furthermore, they aimed to flatten the middle class tax bracket.
Regarding potential savings, the CDU politician suggested that the approach would likely involve merely “the lawnmower method: making systemic cuts to many subsidies-and doing so consistently”. According to Spahn, while this “hurts somewhat in many areas” it possesses a “simple, comprehensible logic”.
Spahn expressed skepticism about maintaining the fuel rebate, noting that diesel and petrol prices would be significantly higher if the 17-cent reduction had not been applied-a situation partly influenced by the position on the Strait of Hormuz. He suggested a joint review in mid-June to assess the situation, while also admitting, “The bazooka is empty” according to the CDU politician.
