The proposal by Berlin SPD candidate Steffen Krach to introduce a new solidarity levy on high incomes has faced strong criticism from the CDU. Tobias Middelberg, a CDU representative, stated that this proposed “Future Solidarity Levy” would actually be a detrimental tax on the country’s economic base.
According to Middelberg, the levy amounts to a five percent tax increase. He argued that this tax would not primarily affect wealthy individuals, but rather a significant portion of businesses, noting that three-quarters of German companies are classified as partnerships for income tax purposes. The CDU parliamentarian warned that such a massive increase in taxation would drive more companies out of Germany and destroy jobs.
Krach had campaigned for this new tax in the newspaper Spiegel, arguing it would help create financial leeway for tax relief and boost the acceptance of upcoming social reforms. The SPD politician envisions an additional five percent solidarity tax on incomes exceeding €300,000 for singles and exceeding €500,000 for married couples. The revenue generated from this tax would be specifically channeled into education and family support. Krach justified his initiative by citing the growing inequality within Germany.
