The Hesse State Premier, Boris Rhein, has called for an end to the ongoing debate surrounding inheritance tax, arguing that any discussion of increased levies is detrimental, especially amidst current economic challenges. Rhein stated that raising taxes risks jeopardizing the competitiveness of businesses, initially generating revenue but ultimately stifling growth and potentially leading to a decline in overall tax income. He expressed concern that the current debate is creating uncertainty and highlighting the inherent complexities of inheritance tax, particularly concerning generational transitions within family-owned businesses.
Separately, Rhein emphasized the need to prioritize German companies when allocating the substantial defense spending recently announced. He advocated for a combined combat readiness and stimulus package specifically designed to benefit the domestic economy. He proposed a “Germany Guarantee” ensuring that German businesses are largely favored in military procurement activities. This approach aims to bolster national security, strengthen sovereignty and support domestic industry through increased orders for the national arms industry, investment in combat drone production and reinforcement of critical infrastructure. The increased funding, Rhein asserted, should yield not only enhanced security but also increased value creation within Germany.