During the debate over tax reform, the Green Party proposed a multi-tiered increase in the top marginal tax rate. Specifically, they suggested raising the rate to 45% on annual income starting at €120,000, and further increasing that rate to 48% for incomes over €250,000, according to Green parliamentary deputy Andreas Audretsch.
To provide relief for lower-income earners, the party also proposed raising the basic tax allowance (Grundfreibetrag) by €500 and the employee lump-sum tax credit to €1,500. Audretsch explained that this dual approach-taxing higher incomes more heavily while easing the burden on average earners-would protect low-to-moderate incomes. He estimated that an average family with two children could save approximately €120 to €150 each year. Furthermore, the Greens advocated for developing a tax option model to ensure that partnerships are not disproportionately affected by the reforms.
Alongside presenting their proposals, the Green politician leveled sharp criticism, primarily targeting announcements made by the Union party. Audretsch argued that the Union’s proposed measures would cost €30 billion and would primarily benefit individuals with the highest incomes-a measure he deemed unfair and unrealistic. He questioned the feasibility of the funding, stating that nobody believed the Union could afford such an expense. “Friedrich Merz doesn’t know how he intends to finance the €30 billion. He is building castles in the air and will ultimately disappoint the country” Audretsch asserted. He concluded by stating that the Green Party was presenting a fair and implementable alternative: a plan that relieves the burden on the general populace without placing undue pressure on businesses.