The economic policy spokesperson for Die Linke, Janine Wissler, sees the need to introduce a wealth tax in light of the annual report from the Wirtschaftsweisen.
Wissler told Rheinische Post (Thursday edition) that the federal government can no longer conveniently disregard the economic reality. Even if the forecast provides some hope, the German economy remains in a profound crisis.
Wissler stated that instead of blaming employees for the crisis and attacking workers’ rights and social benefits, the federal government must finally hold the beneficiaries of the crisis and large fortunes more accountable. She argued that the welfare state must not become a savings bank for the federal government; instead, there must be a fairer taxation of large fortunes.
In their annual report, the Wirtschaftsweisen recommend a reform of the inheritance and gift tax. They pointed out that a reform of the inheritance and gift tax has several advantages compared to the reintroduction of a net wealth tax. The experts said that it builds on an existing system, causes lower collection costs, and is likely to trigger fewer inefficient behavioural adjustments. This inheritance and gift tax should ensure a more even taxation of all types of assets and thus align taxation more closely with actual ability to pay. They suggest that the extensive benefits for business assets under 26 million euros within the exemption deduction should be significantly reduced. The possibility of a retroactive tax waiver through the exemption need review for business assets exceeding 26 million euros should be abolished or significantly limited, according to the Wirtschaftsweisen.
