The Mittelstands‑und‑Wirtschaftsunion (MIT) submitted a motion to the CDU party conference that began in Stuttgart on Friday, calling for a reform of the income tax. The “Rheinische Post” (Thursday edition) reports that the motion demands the entire income‑tax rate schedule be flattened, and that the 42 percent top rate should only apply to taxable incomes above €80,000. MIT argues that the current rate structure is “performance‑harming”.
According to the motion, the goal is to provide a tangible relief to the middle‑class workforce through an income‑tax reform. The tax should reward performance for both employees and business owners, who also pay tax on company profits. MIT chief Gitta Connemann told the newspaper that “high‑earning professionals and top earners are already being taxed” noting that more than 4.2 million workers pay the top rate.
Connemann further stated that the income tax is effectively a middle‑class tax. “More than 70 percent of small and medium‑sized enterprises are called upon to pay this tax month after month” she said. “Many of them also pay the top rate”. She added that if performance for responsible and function managers is to be worthwhile, “we must bring the tax tariffs into the present”.
