The SPD remains firm on its calls for higher taxes on higher earners, the wealthy and heirs, even though Germany’s growth outlook has been sharply lowered.
“Our party links tax fairness with fiscal consolidation to give Germany a new growth model” said Wiebke Esdar, vice‑chair of the SPD parliamentary group, to the “Rheinische Post” on Wednesday. “A system that over‑taxes those who earn little and under‑taxs those who earn a lot is unjust and weakens our economy”.
Esdar said the first step should be an income‑tax reform that would relieve about 95 % of workers, while allowing higher‑earning groups – including MPs – to pay more.
At the same time, she argued that stronger budgets must be supported. “We reject a VAT increase because it would hit those who already have to stretch every euro. It also dampens domestic demand, which hurts our economy right now”.
Before adopting such a tool, the SPD wants to explore alternatives: reviving a wealth tax on multimillion‑ and billion‑euro fortunes, implementing a fairer inheritance tax and reforming capital‑gains tax.
The party also stresses that spending cuts are essential. Economic research institutes have already cut this year’s growth forecast to 0.6 % because of the situation in Iran.
