The leader of Germany’s largest trade union confederation, the DGB (Deutscher Gewerkschaftsbund), Yasmin Fahimi, has proposed a one-time wealth tax on Germany’s wealthiest individuals, citing concerns about sluggish economic growth and the long-term financing of social security systems.
Speaking to publications within the Funke-Mediengruppe, Fahimi argued that the approximately 249 billionaires residing in Germany should contribute through a singular levy. She suggested that the funds generated could be directed towards an investment fund or utilized as venture capital. Fahimi posited that as the economy recovers, these individuals would benefit from the subsequent economic growth.
Further emphasizing the need for significant assets to support societal investments, Fahimi highlighted the widening gap between the affluent and the broader population, noting that a substantial portion of the population holds minimal savings.
Beyond the proposed wealth tax, Fahimi advocated for the reintroduction of a wealth tax and reforms to inheritance tax legislation. She specifically pointed to inconsistencies in the current inheritance tax system, where extremely high inheritances are sometimes taxed at proportionally lower rates than smaller inheritances. Her proposal involves a million-euro lifetime inheritance allowance, with a uniform tax rate applied to any inheritance exceeding that value. Furthermore, she suggested allowing for generous deferrals of inheritance tax on business assets to safeguard the continuation of businesses facing potential difficulty.
