North Rhine-Westphalia should champion the reintroduction of a wealth tax within the Bundesrat, a leading poverty researcher has urged, citing growing public discontent and a widening chasm between the affluent and the impoverished. Christoph Butterwegge, a prominent political scientist and member of the expert panel responsible for the federal government’s recent Poverty and Wealth Report, delivered the call in an interview with the “Rheinische Post”, highlighting the report’s shortcomings and connecting public frustration to the rising political influence of the far-right AfD.
The report, approved by the cabinet this week, has drawn sharp criticism from Butterwegge, who argues it inadequately addresses the scale of wealth accumulation and avoids critical analysis of societal inequality. “The report merely describes poverty, completely ignores significant wealth and fails to offer any analysis” he stated. This lack of scrutiny, he believes, fosters a sense of injustice among a growing segment of the population, contributing to the electoral successes of parties like the AfD.
Butterwegge’s proposal to have North Rhine-Westphalia, a region facing budgetary pressures, actively push for the wealth tax within the Bundesrat signals a significant shift in the debate surrounding taxation and social equity. He suggested a temporary levy, proposing a rate of ten percent applied over a five-year period on the largest fortunes. He noted that the prerogative to levy such a tax lies with the Länder.
Beyond the wealth tax, Butterwegge voiced further demands for fundamental socioeconomic reforms. He called for a substantial increase in the minimum wage to at least €15 per hour and advocated for a basic income guarantee sufficient to allow recipients to live with dignity. He stressed that these measures are not merely acts of social charity, but vital to restoring public trust and mitigating the conditions fueling political polarization. The current socio-economic policies, he argues, are failing to address the root causes of public discontent and risk further exacerbating societal divisions.
