The Free Democratic Party (FDP) has strongly opposed the Social Democratic Party’s (SPD) proposal for a new tax on Artificial Intelligence (AI) within companies. FDP General Secretary Martin Hagen told the “Rheinische Post” that “the SPD misunderstands the dramatic situation in the country.” He argued that “Germany is a high-tax country, but instead of relief, a new tax is being introduced every week by someone in the coalition.”
Hagen warned that penalizing AI companies that failed to be established or settled in Germany due to poor operating conditions would be counterproductive. According to him, an AI tax would jeopardize future prosperity and jobs. Instead, he advocated for the policy path currently being pursued by the SPD and CDU. The FDP politician stressed the need to cap the tax burden on all entrepreneurial income at a maximum of 20 percent in order to maintain competitiveness, warning against an “escalation competition” on things that could be taxed.
The SPD parliamentary group plans to adopt a document during its conference demanding taxation on large tech corporations and on productivity gains achieved through the utilization of AI.
