The CDU’s affiliated interest group, the CDU Economic Council, has urged the federal government to advance the planned overhaul of the income tax system. Astrid Hamker, the Council’s president, told Focus that tax relief is needed “if possible, by the end of this year, given the economic situation of many companies”. Furthermore, the group called for an acceleration of the already agreed-upon reduction in corporate tax.
Currently, the federal government plans to implement the income tax reform on January 1, 2027. The coalition agreement between the CDU/CSU and the SPD had promised to lower income tax rates for small and medium-income earners by the middle of the legislative period. However, critics point out that any reduction in tax rates for lower earners will inevitably benefit high-income individuals as well.
In response, the SPD intends to tax high incomes more heavily to minimize the potential revenue losses resulting from tax cuts. Meanwhile, parts of the CDU are opposed to this approach or demand the complete abolition of the Solidary Surcharge, which currently only applies to high incomes.