Berlin’s Mayor, Kai Wegner (CDU), has warned the federal government against the failure of planned tax reforms in the Federal Council, arguing that such reforms should not disproportionately burden the states. Speaking to the news magazine “Focus” the CDU politician stated that a comprehensive tax reform is more needed than ever, emphasizing the urgent requirement for relief for the middle class. Given the rising costs of energy and groceries, many citizens are struggling to manage their finances, and Wegner stressed that this group must be prioritized in any such reform.
However, acknowledging the difficult financial situation faced by states and municipalities, Wegner firmly asserted that a tax reform cannot unilaterally fall on their expense. He clarified that for a tax reform to be acceptable, it must either be revenue-neutral or, in accordance with the principle of connectivity, be compensated by the federal government. He added that any business that comes at the expense of another party would not gain a majority in the Federal Council.
