A significant disagreement has emerged regarding proposed reforms to Germany’s inheritance tax system. The Christian Democratic Union/Christian Social Union (CDU/CSU) parliamentary group has strongly rejected recent suggestions put forward by SPD General Secretary Tim Klüssendorf, who proposed the introduction of a “lifetime allowance” for inheritors.
Deputy parliamentary group leader Sepp Müller voiced concerns that such a reform is ill-timed, asserting that the SPD’s apparent goal is to place a greater financial burden on entrepreneurs, a move he believes would hinder economic recovery. Müller emphasized a preference for private investment over state intervention, citing examples such as SAP founder Hasso Plattner, whose contributions through work and philanthropy have demonstrably benefitted the nation and society to a greater extent than could be achieved through bureaucratic spending.
The CSU party echoed this sentiment, with General Secretary Martin Huber arguing that it is inappropriate for the state to profit from the lifetime achievements of parents and grandparents who have striven to provide for their families. Huber reiterated a previous call for greater autonomy for the individual states in determining inheritance tax rates.
Further complicating the debate, Reiner Holznagel, president of the Federal Association of Taxpayers, has advocated for a significant increase in tax allowances. However, he proposed a different approach, suggesting that the focus should be on providing allowances for those leaving assets, rather than the recipients of inheritance. This would allow the individual asset owner to determine who benefits from the allowance, potentially extending opportunities to a wider circle of individuals beyond immediate family. The differing perspectives highlight a broader discussion surrounding the role of taxation and the distribution of wealth in Germany.