The Green Party has accused the federal government of merely disguising the reality of the tax reform, claiming that the supposed relief for citizens next year is just an illusion. According to Andreas Audretsch, the deputy group leader for the Greens, Friedrich Merz and Lars Klingbeil are attempting “to sell the public a lie.” He predicted that by early 2027, families would realize they would not have more money, but less, leading to increased public frustration.
Audretsch argues that what is advertised as a form of relief is actually a combination of increased burdens and cuts. Specific concerns include rising social contributions and higher out-of-pocket costs for medication, alongside reductions to housing benefits (Wohngeld), parental benefits (Elterngeld), child support subsidies (Unterhaltsvorschuss), and the abolition of the immediate child allowance (Kindersoftzuschlag). Audretsch asserts that the supposed minor relief stemming from Financial Minister Klingbeil’s tax reforms is being canceled out by these additional charges and benefits reductions.
The Greens also sharply criticized Economy Minister Katherina Reiche (CDU), despite her ministry having called for additional tax relief. “Katherina Reiche’s wish list is absurd and completely unserious,” Audretsch remarked. He pointed out that she demanded tax cuts for the wealthiest individuals without providing any proposal on how these measures would be financed, suggesting that Ms. Reiche demonstrates the CDU’s complete lack of financial seriousness.
Furthermore, Audretsch claimed that the coalition is implementing cuts that disproportionately affect families while protecting the ultra-wealthy. He highlighted the ongoing exemption for hereditary estates exceeding 26 million euros, which allow the super-rich to remain entirely free of inheritance tax.
