Thuringia’s Minister-President, Mario Voigt of the CDU, has called on the federal government to compensate states for the costs associated with the planned income tax reform. Speaking to the news portal “T-Online” on Tuesday, Voigt stressed that states and municipalities should not be left to bear these financial consequences. He argued that any resolutions made regarding tax relief must also be accompanied by viable financing solutions, warning against further weakening the financial capacity of regional and local governments.
While Thuringia is willing to participate constructively in the reform, Voigt emphasized that this cooperation must be conditional on the federal government fulfilling its responsibilities. His position aligns with a broader trend among state leaders who are warning the federal government about potential revenue losses for states and municipalities.
In contrast, the CDU parliamentary group in the Bundestag reminded state leaders of their own vested interests in the reform. Mathias Middelberg, the CDU’s responsible deputy faction chair, told “T-Online” that both the federal government and the states will lose tax revenue without economic growth. However, he maintains that new growth will only occur if employers and employees benefit from noticeable reductions in costs and taxes. He added that the states should also take this into consideration.
