Federal Minister of Economics Katherina Reiche (CDU) is calling for swift tax relief for companies and workers. She told “Bild am Sonntag” that it would make sense to discuss bringing forward a reduction of the corporate tax rate, so that the benefits would take effect earlier than the current plan of starting in 2028.
The federal government has so far scheduled a corporate‑tax cut only from 2028 onward. When asked about the timing of an income‑tax reform, Reiche said, “We need to relieve the labor factor as quickly as possible. We are negotiating with the SPD about whether it can be accelerated. The more people work, the more attractive work becomes, the higher Germany’s productivity, and the lighter the burden on the social‑security system”.
Reiche added that the joint objective should be to push these levers into action as soon as possible. According to the coalition agreement, the government intends to lower income tax for small and medium incomes by the middle of the legislative period.
