In the debate over a tax reform, SPD politicians also advocate a heavier burden on high earners and tax increases, a stance that faces resistance from the Union.
To “Bild” in its Tuesday issue, SPD parliamentary manager Dirk Wiese said, “We have firmly agreed on a tax reform focused on small and medium incomes. In this context it also makes sense to delay the application of the top tax rate – while simultaneously imposing stronger taxation on very high incomes”. He left the exact income threshold for the top rate open.
The SPD finance spokesperson and Bundestag deputy Bettina Hagedorn called on the Union and CDU general secretary Carsten Linenmann to present proposals for counter‑financing the tax relief for small and medium incomes. “We agree that we want tax cuts for the working middle” Hagedorn told “Bild”. “But there needs to be counter‑financing, and Carsten Linenmann is not proposing exactly that”.
Parliamentary manager of the Union parliamentary group Steffen Bilger (CDU) warned the SPD against higher taxes. “We do not want tax increases. That is what we agreed upon in the coalition” Bilger said. “Instead, we rely on targeted tax cuts – for the people, our economy, our country. The first agreed relief measures, such as the reduction in agricultural diesel tax and the hospitality tax, have been successfully implemented. Now it is about ensuring that small and medium incomes benefit substantially. We are working on that and it should be brought into place quickly”.
