The German Association of Industry and Commerce (DIHK) sharply criticized the Union’s intention to increase the top income‑tax rate while simultaneously easing the steep tax rise for middle‑income earners as part of a major tax reform. Helena Melnikov, DIHK’s chief executive, told the newspaper “Handelsblatt” that the party’s stance keeps it among the highest taxpayers but falls short on growth and competitiveness. She said any proposal for tax increases “is a completely wrong signal at the wrong time”.
Melnikov likened the debate over a higher top rate to the ongoing speculation that an increased inheritance tax for business heirs would be “poisoned for our economy”. She warned that if many medium‑sized companies must absorb additional tax burdens, the viability of many German locations will be at risk.
The Social Democratic Party welcomed the Union’s willingness to discuss raising the top rate. SPD deputy faction leader Wiebke Esdar said the aim of the reform is to significantly relieve small and medium incomes and that the measure must be financed by contributions from the very wealthy. She called the Union’s openness to dialogue a “step forward”.