CDU General Secretary Carsten Linnemann welcomed a tax reform plan presented by two members of the CDU. He stated to the “Bild” newspaper that he is receptive to increasing the tax rate for high earners, suggesting that the reform would represent a significant breakthrough in the current tax debate and send a positive signal for Germany.
Linnemann’s reaction was prompted by a concept put forth by financial policymakers Yannick Bury (CDU) and Florian Dorn (CSU). This proposal suggests that the top marginal tax rate of 42 percent would only apply to gross incomes exceeding 85,000 euros in the future. Furthermore, the plan includes the abolition of the solidarity surcharge and an increase of the high-earner tax rate from 45 to 47.5 percent. The overall tax relief predicted by the plan is estimated to be between 25 and 30 billion euros.
Regarding the funding for these changes, Linnemann countered that those who advance by reducing subsidies while simultaneously easing the burden on employees, small and medium-sized enterprises, and skilled trades would provide Germany with new growth and confidence during the current economic downturn.
Another CDU financial policymaker, Fritz Güntzler, told “Bild” that the presented tax proposal is “a very good foundation for discussions with the Minister of Finance”. He pointed out that simply securing a tax-free subsistence minimum by 2027 would necessitate a tax relief in the tens of billions of euros. Güntzler called on Federal Minister of Finance Lars Klingbeil (SPD) to present his own tax concept so that all parties could finally introduce a unified tax reform, aiming to provide “a noticeable relief” to employees and companies before the end of the year.
