The German Social Association (SoVD) has criticized the tax reform package, which was agreed upon by the Coalition Committee, calling it inadequate. During an interview with the “Rheinische Post”, SoVD head Michaela Engelmeier stated that the reform is, at best, merely a “minor tweak.”
Engelmeier points out that the package lacks any provisions for reforming inheritance taxes or reintroducing a wealth tax. She highlights that extremely wealthy individuals derive income from both earnings and capital gains, meaning that very large fortunes would remain largely untouched by the current government.
Furthermore, she expressed disappointment that the issue of tax evasion was not addressed. According to estimates, the annual damage caused by tax evasion ranges between 50 and 200 billion euros. Engelmeier added that consistently closing tax loopholes would also alleviate pressure on state finances, benefiting citizens.
The reform of the income tax is scheduled to take effect on January 1, 2027, and is primarily intended to benefit small and medium-income groups.
