The Social Democratic Party (SPD) is signaling a significant shift in economic policy, promising a comprehensive reform of inheritance tax laws by 2026, with a particular focus on increasing the taxation of substantial inheritances. SPD parliamentary group leader Matthias Miersch, in an interview with “Rheinische Post”, declared the party’s ambition to become a “reform party” balancing relief for lower and middle incomes with a fairer system for inherited wealth.
The impending reform is fueled, at least partially, by an anticipated ruling from the Federal Constitutional Court, expected in the first quarter of next year. While acknowledging the court’s potential influence, Miersch emphasized the SPD’s commitment to proactively introduce a “balanced concept” designed to be both equitable and future-proof, regardless of the court’s decision.
A central element of the proposed reform targets the taxation of exceptionally high inheritances. Miersch explicitly stated that “wealthy heirs must contribute more to the common good-it’s a matter of justice”. He criticized the current system for facilitating loopholes exploited by those inheriting vast fortunes while disproportionately affecting average inheritors. The SPD intends to directly address these structural inequalities.
Responding to concerns that increased taxation could stifle economic growth, Miersch dismissed such arguments as “a tired counter-argument by the wealthy in Germany”. He pointed to examples from other countries demonstrating the feasibility of safeguarding businesses while simultaneously implementing a more equitable taxation of extreme inheritances and assets. Miersch clarified that the proposed measures are not intended to impact inherited properties like family homes or modest assets, but rather to address the inheritance of “high million-sum amounts”. The SPD is promising to unveil the full details of its reform concept in the near future, setting the stage for a potentially contentious debate within German politics.
