CDU General Secretary Carsten Linnemann has warned against the idea that all social and tax reforms should exclusively target high earners. Speaking to the broadcaster Welt, he acknowledged that some highly affluent individuals have earned their wealth but stressed that many are highly mobile and could easily move to countries like Switzerland, Australia, or Austria if conditions become too burdensome. Conversely, he noted that there are many people who rely significantly on state transfers because they are marginalized, and for these groups, moving is not an option. He cautioned that if these vulnerable groups are forced to shoulder the weight of the reforms, it will be ineffective and erode public trust.
Regarding the planned income tax reform, Linnemann insists that the middle class, small and medium-sized enterprises (Mittelstand), and craft workers should not be penalized but rather supported. “We fundamentally do not want tax increases” he stated, adding that while some compromise is inevitable, it is unacceptable if the burden falls on the Mittelstand, the middle class, or the skilled trades. He views this as a “completely wrong signal”. He also mentioned that certain arguments previously used by US presidents-which advocated for tax cuts to stimulate economic growth, leading to subsequent higher tax revenues-could be adopted by German policymakers.
Linnemann firmly opposes any increase in the Value Added Tax (VAT) that would place lower-wage earners under increased pressure. He expressed deep skepticism about this measure, citing the risk of fueling inflation. He believes that introducing a VAT increase would artificially induce another inflationary surge by the state. Given that he expects the European Central Bank to raise interest rates during its June meeting due to intense economic pressure, he deems the signaling of a VAT hike in the current economic climate to be unwise.
