Inheritance Tax Sparks CDU Debate

Inheritance Tax Sparks CDU Debate

A renewed discussion surrounding inheritance tax reform is taking place within the Christian Democratic Union (CDU) party. Following recent statements by party leader Friedrich Merz, who refrained from categorically ruling out tax increases, a renewed call for a cessation of the debate has emerged from the CDU’s Economic Council.

In comments to the Handelsblatt, General Secretary Wolfgang Steiger cautioned against further tightening of inheritance tax regulations, stating that such measures could negatively impact family-owned businesses already facing substantial tax and levy burdens. Steiger also dismissed the possibility of a flat tax model, suggesting that such a proposal would likely trigger competitive posturing among political parties during election campaigns.

However, a more reform-minded sentiment exists within the party, particularly from its social wing. Dennis Radtke, chairman of the Christian Democratic Workgroup, echoed calls for reform, arguing that discussions regarding fairness should extend beyond debates surrounding social welfare programs. Radtke highlighted the perceived inconsistency of the current system, referencing situations where individuals face inheritance tax liabilities while others accumulate vast fortunes without paying any taxes. CDU/CSU parliamentary group leader Jens Spahn has also voiced support for reform.

The Federal Constitutional Court is expected to deliver a ruling later this year concerning the legality of existing exemptions granted to business succession cases. CDU and CSU financial experts anticipate the court will mandate a comprehensive reform of the inheritance tax system.