Internal divisions are emerging within the CDU/CSU parliamentary group regarding proposals for budgetary reform. Andreas Mattfeldt, a budget expert for the CDU, recently suggested increasing taxes on high earners as a means of funding social reforms, a move that has drawn sharp criticism from within his own party.
Christian von Stetten, chairman of the Mittelstand parliamentary group within the CDU/CSU, voiced strong opposition to the proposal. In comments to Bild newspaper, von Stetten stated he doubted a majority within the parliamentary group would support raising income or inheritance taxes. He urged colleagues focused on fiscal consolidation to prioritize expenditure reduction, asserting that the state already collects sufficient revenue from citizens. The Mittelstand group comprises over 160 CDU/CSU parliamentarians. He cautioned against pursuing further tax increases.
Conversely, the SPD parliamentary group has responded favorably to Mattfeldt’s initiative. Wiebke Esdar, deputy chairperson of the SPD parliamentary group, welcomed the proposal as a constructive step. She noted that it reflects a widely held understanding amongst policy experts, emphasizing the need for compromise in budgetary policy. Esdar affirmed the SPD’s willingness to make the social welfare system more equitable, but clarified this does not equate to drastic cuts in social benefits.
Dirk Wiese, parliamentary managing director of the SPD, also expressed support for Mattfeldt’s suggestion. He indicated that the SPD would be receptive to the idea of increasing taxes on high earners, coupled with relief for small and medium-income earners, as a step towards greater social justice.
