Dennis Radtke, the leader of the CDU labor wing, advocates for a moderate overhaul of inheritance tax and a move toward fairer taxation. Addressing the upcoming decision by the Federal Constitutional Court, Radtke stated to the “Rheinische Post” that discussions must now determine whether inheritance tax is genuinely being applied equitably. He emphasized that the focus is not on increasing tax rates, but rather on consistently enforcing existing tax obligations.
Radtke highlighted a perceived imbalance, noting that there is a necessity to explain and act when large housing portfolios managed through corporate structures can be sheltered from taxes, while a family inheriting a parental home is required to pay taxes. To address this, he argued that two strategies are necessary: closing legal loopholes and rigorously applying current laws. He also stressed that tax authorities require effective auditing tools and adequate staffing to accurately identify tax liabilities and ensure they are collected.
The CDA chief insisted that anyone who owes taxes must fulfill that obligation. According to Radtke, the ability to pay should not depend on whether one can afford expensive consultants or complex offshore corporate arrangements. While corporate interests and jobs must be protected, he acknowledged that deferrals could help situations where immediate tax payment would jeopardize economic stability. However, he concluded that any owed tax must eventually be paid, stating that tax fairness cannot remain merely theoretical.
This position follows previous signals from the Union parliamentary group’s labor wing, which had already shown openness toward reform. The Federal Constitutional Court is scheduled to hold verbal hearings regarding the inheritance tax next Monday and Tuesday.
