The FDP has presented a new comprehensive tax‑reform proposal. In a paper that the Monday edition of Handelsblatt reported, the party says that its overhaul of the tax system will yield the fastest impact on the path to growth and employment. The concept, drafted by long‑time FDP fiscal policy expert and party honorary chairman Hermann Otto Solms, is to be incorporated into the party’s new program.
The proposal targets relief for both citizens and businesses and aims to cut tax bureaucracy. For individuals, the plan focuses on “relief for earners with an annual income between €15,000 and €75,000” to be achieved through a four‑tier tax rate structure of 15 %, 25 %, 35 %, and 42 % depending on income level. The top rate remains unchanged. The FDP also wants to keep the 45 % “rich tax” that currently applies to incomes of roughly €278,000 and above, and the married‑couple splitting rules are to be preserved.
For companies, the party proposes reducing the combined corporate and trade tax burden from about 30 % to 20 %, arguing that this is required to stay competitive in the international arena.
