The leader of Germany’s largest trade union federation, the Deutscher Gewerkschaftsbund (DGB), Yasmin Fahimi, has proposed a one-time wealth tax on Germany’s wealthiest individuals, citing concerns regarding the nation’s economic performance and the long-term financing of social security systems.
Fahimi, in statements provided to the Funke-Mediengruppe newspapers, suggested a levy targeting the approximately 249 billionaires residing in Germany. The funds generated, she stated, could be directed toward an investment fund or utilized as venture capital. She argued that as the economy recovers, these individuals would ultimately benefit from renewed economic activity.
Fahimi emphasized the need for substantial assets to contribute to societal investment, pointing to a widening economic disparity where a significant portion of the population holds minimal savings while the wealthiest continually accumulate greater wealth.
Beyond the proposed one-time wealth tax, Fahimi advocated for the reintroduction of a recurrent wealth tax and a reform of inheritance tax laws. She highlighted a perceived inequity in current inheritance tax practices, where exceptionally large inheritances are taxed at proportionally lower rates compared to smaller ones. Her proposed reform suggests a lifetime inheritance allowance of one million euros, with any amount exceeding that limit subject to a uniform tax rate. She also suggested lenient payment schedules for inheritance taxes related to business assets to safeguard the continuation of vital operations.