A debate has emerged within Germany’s governing coalition regarding potential tax increases for high earners. The discussion was initiated by CDU budget policy spokesperson Andreas Mattfeldt, who suggested an increase in the top income tax rate could be considered if the Social Democratic Party (SPD) agrees to substantial reforms within the social welfare system.
CDU social policy expert Markus Reichel signaled openness to the proposal, but emphasized the need for fiscal responsibility as a precondition. He stated that reducing overall government spending must be prioritized to prevent further increases in social security contributions, arguing this is a fundamental obligation to service providers throughout the country. Reichel indicated any further discussion on revenue-generating measures is contingent upon addressing expenditure, calling for movement from the SPD and emphasizing the CDU’s willingness to take responsibility through bold reforms.
However, not all within the CDU are aligned with this approach. Stephan Toscani, the CDU’s state chairman in Saarland, urged all coalition partners to focus on the diligent implementation of projects already agreed upon in the coalition agreement. Similarly, Axel Knoerig, deputy head of the CDU’s social policy wing, reaffirmed the party’s previous stance against tax increases, stating a commitment to maintaining that position.
