The Social Democratic Party (SPD) is cautioning the Christian Democratic Union (CDU) against implementing tax relief measures that prioritize the wrong income brackets.
According to Wiebke Esdar, the SPD’s parliamentary group deputy leader, the party believes that income tax relief should primarily target lower and middle-income earners. Esdar stated to the Funke-Mediengruppe newspapers, “This is not only equitable but also economically sensible”. She argued that individuals with very high incomes and inheritors of significant estates already contribute a proportionally smaller share to state financing.
The remarks come in response to recent calls from Federal Minister for Economic Affairs, Katarina Reiche (CDU), who advocated for an expedited reduction in income tax to stimulate economic growth. Esdar emphasized the necessity of maintaining fiscal prudence during the coming years to ensure balanced budgets, a goal she characterized as a shared responsibility within the governing coalition. “We, as a coalition, are committed to achieving this together and everyone will be evaluated on their contribution, including Minister Reiche as a member of the cabinet” she added.
