The German Chamber of Industry and Commerce (DIHK) sharply criticised the Union’s proposal that, as part of a major tax reform, the top tax rate be increased while the steep rise in taxes for middle‑income earners is reduced.
DIHK Chief Executive Helena Melnikov told “Handelsblatt” that high fees and burdens are already a priority for the chamber, whereas growth and competitiveness are not. “Therefore any discussion of tax hikes is a completely wrong signal at the wrong time” she added.
She compared the debate over the top‑rate change to ongoing speculation that higher inheritance tax for business heirs would be “poison for our economy”. If thousands of small and medium‑sized enterprises are to shoulder even higher tax burdens, many will find it difficult to remain in Germany.
The SPD welcomed the Union representatives’ willingness to discuss a higher top rate within a tax reform. SPD deputy group leader Wiebke Esdar told a newspaper that the aim is to noticeably relieve small and medium incomes through an income‑tax overhaul. She stressed that the reform must be financed, with the very wealthy shouldering a share of the cost. “The fact that the Union is no longer completely shut off is a step forward” Esdar said.
