Calls for adjustments to inheritance tax policies are gaining traction in Germany, particularly concerning businesses located in eastern states. Saxony-Anhalt’s Minister of Economic Affairs, Sven Schulze, has voiced support for exempting eastern German companies from inheritance tax, citing a disparity in capital reserves compared to their western counterparts. He argued that ongoing support for small and medium-sized enterprises (SMEs) in the eastern region is crucial for continued economic development, emphasizing the importance of retaining funds within these businesses for investment.
Schulze characterized the current national debate surrounding inheritance tax as misguided, stating that the core issue isn’t a lack of revenue but rather an overabundance of expenditure. This perspective was echoed by Bavarian Premier Markus Söder, who similarly challenged the perception of inheritance as “unearned income”. Söder underscored the importance of protecting property rights and safeguarding business assets within the inheritance tax framework, warning that increasing inheritance tax could lead to business relocation and a constriction of property ownership. He affirmed Bavaria’s opposition to raising inheritance taxes.
During a broadcast appearance, Schulze also aligned with former Chancellor Angela Merkel’s criticism regarding the recent German Unity Day celebrations in Saarbrücken, expressing his desire for an eastern German speaker to have been included in the program. While acknowledging the symbolic importance of French President Emmanuel Macron’s presence as a guest speaker to emphasize European unity, Schulze suggested that future observances should strive for greater representation.