CDU Urges AI Taxation as Path to Financing Future Generations and Modernizing Social State
Politics

CDU Urges AI Taxation as Path to Financing Future Generations and Modernizing Social State

CDU Deputy Chairman Karin Prien is advocating for a specific tax on artificial intelligence (AI). According to Prien speaking to “Stern,” if the value creation process fundamentally relies on AI, it must be subject to taxation. “There is no other way,” she insisted, adding that the Federal Minister for Families believes that “we must move toward new forms of taxation.”

Prien cautioned, however, that this tax should not lead to “reform fatigue.” Simultaneously, she argued for the need to streamline the welfare state, make the government more efficient, and increase targeted investments in opportunities for children and young people. Her comments contribute to an ongoing fundamental debate within the Union party, where factions within the CDU/CSU are currently divided.

Previously, Federal Digital Minister Karsten Wildberger had supported taxing AI revenue in Germany, but he subsequently retracted that position. Furthermore, Federal Minister for Economic Affairs Katherina Reiche currently rejects the idea of such a tax, and Federal Chancellor and CDU party leader Friedrich Merz maintains a critical stance towards AI taxation.

Prien primarily justified her proposal by highlighting the potential for better opportunities for the younger generation. She stated that the resulting profits must not accrue only to a select few and that growth needs to be ecologically sustainable. She underscored the importance of young people having the chance to acquire homeownership and ensuring that rents remain affordable, as well as guaranteeing that everyone can support a family. Finally, she stressed the necessity of discussing what artificial intelligence and the changing world of work mean for young people and their professional careers.