Michael Vassiliadis, leader of IG-BCE, proposed a significant overhaul of Germany’s tax structure, suggesting the highest tax rate should only apply to yearly incomes starting from roughly 100,000 euros instead of the current level of nearly 70,000 euros. The union official stated that while trade unions support a linear-proportional income scale, they oppose models that overly burden the middle class. Instead, those who earn less should pay little or nothing, while higher earners must contribute more.
Specifically, Vassiliadis suggested raising the top marginal tax rate-currently 42 percent-by two or three percentage points. Furthermore, he proposed introducing a dedicated high tax on fortunes starting at 200,000 euros and increasing the taxation of inheritances.
Vassiliadis expressed understanding toward business representatives who oppose higher taxes on company assets needed for investment purposes, insisting that companies should not be stripped of necessary capital. However, he stressed that wealth management by rich individuals must not allow them to pay almost no tax. He criticized current scenarios where wealthy people move funds around merely to minimize their liabilities.
In addition to these adjustments, he called for a specific levy on extremely affluent individuals. This additional contribution would be dedicated to financing necessary investments in infrastructure and defense. Vassiliadis argued that because very rich people benefit greatly from sound infrastructure and security-conditions essential for their businesses to thrive-they should make an independent financial contribution toward providing it.
