A German left-wing party, ahead of the federal election, has presented a five-point plan to halve the wealth of Germany’s billionaires within a decade. The increased revenue is to be invested in the expansion of the social welfare state and infrastructure, according to the concept reported by the “Handelsblatt”. The federal executive is expected to make a decision on the plan this weekend.
The party’s chairman, Jan van Aken, warns that the US has shown how quickly a democracy can decline if the super-rich gain power. Similarly, in Germany, the super-rich are undermining democracy, he claims. The Christian Democratic Union (CDU) has received more than six million euros in election donations, including from billionaires and is “making politics for the super-rich”, van Aken says.
The Left Party’s plan involves reintroducing a wealth tax, with a rate of one percent for assets over one million euros, five percent for those over 50 million euros and 12 percent for those over one billion euros. Additionally, a one-time wealth tax will be levied on the top 0.7 percent of the wealthiest individuals. Those with assets of over two million euros will be required to pay 10 to 30 percent of their wealth over a period of ten years.
The party also plans to increase the inheritance tax, taxing large inheritances above the free allowances at a rate of 60 percent. Furthermore, high-income individuals will be required to pay a higher rate of tax, with a 60 percent tax rate applying to annual gross incomes of over 250,000 euros and 75 percent for those over one million euros. Capital gains will also be taxed at a rate similar to that of work income, rather than the current flat rate of 25 percent.