The CDU/CSU party has criticized plans put forward by Federal Finance Minister Lars Klingbeil of the SPD, which seek to significantly restrict tax benefits currently available to economically active associations. Fritz Güntzler, the party’s parliamentary spokesman for financial policy, questioned in the “Welt am Sonntag” whether the government truly wants to exchange the anticipated backlash from these associations for annual additional revenues amounting to 45 million euros. He described the move as a “fatal signal,” given that the administration had publicly intended to strengthen volunteerism.
The CDU politician expressed confusion over several proposed changes and cuts in the Finance Ministry’s consultation draft that were not part of the tax agreement reached by the Coalition Committee in early July. Güntzler argued that major elements of the consultation draft were unsupported by the Coalition Committee. These changes included the elimination of the exemption for workforce discounts and the removal of deductions for profits made from selling corporate shares.
The background to this controversy is a draft from the Federal Finance Ministry, tentatively titled the “Income Tax Reform Act 2027.” According to the plan, the existing tax-exempt threshold of 5,000 euros for tax-liable corporations, associations, and assets would be lowered to 1,000 euros. The Ministry states that this reduction would bring approximately 45 million euros in additional tax revenue to the Federation, the states, and the municipalities combined each year.
