The German Trade Union Confederation (DGB) has proposed a new tax framework aimed at closing budget deficits by imposing a heavier tax burden on the extremely wealthy. According to Deputy DGB Chairman Stefan Körzell, the Federal Government must finally hold those who benefit from unequal distribution financially accountable, rather than cutting spending for the working class or undermining social achievements.
The DGB’s tax concept advocates for the reintroduction of a wealth tax. This tax would apply to every Euro exceeding a net wealth of one million euros. For married couples, the DGB suggests a threshold of two million euros.
Körzell also called for a specific wealth tax targeting the richest Germans, referring to the “top one percent” of the population. He proposed a rate of ten percent on all private net wealth surpassing ten million euros, which could be paid over a period of 20 years.
Körzell criticized how the increasingly large funding gaps in the federal, state, and municipal budgets are endangering core social pillars of society, noting that the wealth of the super-rich is growing ever faster concurrently.
These proposals are part of a broader tax strategy from the DGB. Other components of the plan include a financial transaction tax, increased corporate tax, and raising the basic income tax allowance from 12,348 to 15,400 euros. The DGB estimates that this comprehensive tax concept could potentially generate over 120 billion euros annually for federal, state, and municipal coffers.
