A debate has emerged within Germany’s governing coalition regarding potential tax increases for high earners. The discussion was sparked by a proposal from CDU budgetary 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 significant reforms within the social welfare system.
CDU social policy expert, Markus Reichel, indicated openness to Mattfeldt’s suggestion, but emphasized the necessity of reducing overall government spending to prevent further increases in social security contributions. He stated that prioritizing fiscal responsibility is crucial and any further discussion hinges on addressing this issue. Reichel specifically called on the SPD to demonstrate flexibility, adding that the CDU is prepared to take responsibility through ambitious reforms.
However, not all members of the CDU are in agreement. Stephan Toscani, CDU party leader in Saarland, urged all coalition partners to focus on the effective implementation of projects already outlined in the coalition agreement. 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.