Carsten Linnemann, the CDU’s general secretary, welcomed a proposal for income tax reform put forward by two Union politicians. He expressed openness to increasing the tax rate for the wealthy, stating in the “Bild” that the “reform would be a breakthrough in the current tax debate” and “would be exactly the right signal that something is moving in a positive direction in Germany”.
Linnemann’s reaction relates to a concept developed by finance politicians Yannick Bury (CDU) and Florian Dorn (CSU). This plan suggests that the top tax rate of 42 percent would only apply to gross incomes above €85,000, that the solidarity surcharge would be eliminated, and that the tax rate on the wealthy would be raised from 45 to 47.5 percent. The expected tax relief from this measure is estimated to be between 25 and 30 billion euros.
Regarding the funding for these changes, Linnemann stated that funding such measures requires taking proactive steps, noting that “those who move forward during this recessionary period by courageously reducing subsidies alongside easing the burden on employees, small and medium-sized enterprises, and crafts will bring new growth and renewed confidence to Germany”.
Furthermore, CDU finance politician Fritz Güntzler told the “Bild” that the proposed tax plan provides a “very good basis for talks with the Minister of Finance”. Güntzler argued that simply ensuring a tax-free basic minimum income by 2027 would necessitate tax relief in the double-digit billions. He urged Federal Finance Minister Lars Klingbeil (SPD) to present his own tax concept so that the parties could finally submit a combined tax reform, which is needed to “significantly ease the burden on employees and companies by the turn of the year”.