A key figure within Germany’s Social Democratic Party (SPD) is continuing to advocate for income tax reform focused on lower and middle income earners, despite reservations expressed by Chancellor Friedrich Merz of the Christian Democratic Union (CDU).
Dirk Wiese, the SPD parliamentary group manager, stated the need for swift progress on tax relief for these income brackets in a recent interview. Chancellor Merz has previously indicated that any such reform would be contingent on securing sufficient funding.
Wiese countered that a reform targeting this segment is both necessary and financially viable. He proposed adjusting the top income tax rate and increasing the tax burden on very high earners as a potential funding mechanism. This approach, he argued, would provide relief to skilled workers and those employed in demanding sectors like the chemical and automotive industries.
He emphasized a willingness to openly discuss this proposal, drawing a parallel to how the CDU pursues its own priorities. Wiese underscored the SPD’s commitment to the principle of progressive taxation – that those with greater means should contribute more to the common good – characterizing it as a fundamental matter of fairness. He acknowledged the potential difficulties in reaching agreement with the CDU but maintained that open dialogue is essential.