Citing the current stalemate in discussions between the SPD and CDU/CSU, the Taxpayers’ Association is calling for a postponement of the income tax reform. With the coalition committee scheduled to meet on Wednesday to deliberate on a reform package, no consensus has yet been reached regarding the tax overhaul.
Holznagel told the “Bild” newspaper that it would likely be better to pause current efforts entirely and restart the process. The president of the association warned that if a resulting package involves tax cuts on one hand but massive tax increases on the other, subsequently damaging the economy, the entire reform would be meaningless. He stated that such a measure would act as an accelerator of recession. Therefore, he argued, it would be preferable to formally admit that agreement cannot be reached at this time.
Holznagel insists he refuses to support a tax reform that ultimately results in increased tax burdens, causes economic decline, and fails to stimulate private investment. He opposes any reform based on tenuous compromises, suggesting that inaction is preferable to pushing forward a flawed plan. He asserted that he is unwilling to choose between two harmful options, but rather demands genuine progress; if that progress is not realistically achievable, then more time must be taken.
In a separate critique, Holznagel challenged the political class’s frequent complaints about budget deficiencies. He pointed out that the state is currently collecting more money than ever before, with total tax receipts across municipal, state, and federal levels nearing one trillion euros this year. Furthermore, he noted that the government plans to take on nearly another trillion euros in debt via special funds by 2030.
He addressed the issue of high government spending, stating, “We have one of the highest levels this year regarding subsidies. We are promoting heat pumps, energy-efficient building renovations, and e-mobility-totaling over 40 billion euros in subsidies!” He listed more than 500 individual measures, arguing that therefore, no one should tell him that there is a lack of funds.
