A leading faction within the German Christian Democratic Union’s (CDU) economic wing is calling for the abolition of the solidarity surcharge and the acceleration of a planned corporate tax reform, in line with agreements made in the black-red coalition contract. This is according to a decision made by the Mittelstands- und Wirtschaftsunion (MIT) federal board, as reported by the Focus magazine.
The group claims that the main burden of the solidarity surcharge falls on companies, as they also pay the surcharge through the income tax. Many small and medium-sized enterprises and craft businesses are affected, the document states, adding that a thorough review of the complete abolition of the solidarity surcharge should be conducted by 2026.
MIT chief Gitta Connemann told the Focus that the faster structural tax relief can be achieved, the stronger the investment power will be. The key points for this are the acceleration of the corporate tax reform and the abolition of the solidarity surcharge, she said. The CDU politician, who is also the government’s commissioner for the middle class, emphasized that the middle class must be relieved of tax burdens.
The black-red government, led by Chancellor Friedrich Merz, had agreed in the coalition contract to maintain the solidarity surcharge, instead planning a “investment booster” with special depreciation for movable assets such as machines from this year onwards. The gradual reduction of the corporate tax rate is then planned for 2028. However, Connemann and the MIT are pushing for the relief to be implemented earlier, with the possibility of accelerating the process to be examined in a review following the 2026 budget audit, according to the resolution paper.