CDU politician Friedrich Merz has expressed openness to an increase in the wealth tax. Speaking to der Spiegel, Merz stated that he views it as possible to flatten the tax rates in the upper bracket and abolish the Solidarity Surcharge, echoing provisions suggested by fellow CDU members. He added that such reforms must eventually happen, arguing, “We should do it before the Constitutional Court is forced to do it for us”.
Merz referred specifically to a concept put forth by two CDU members for a tax reform that is due to be implemented on January 1, 2027. This proposal suggests raising the high-end personal income tax rate from 45 percent to 47.5 percent while entirely eliminating the Solidaritätszuschlag (Solidarity Surcharge). He noted that the governing coalition will have to engage in intense discussion regarding these changes. While acknowledging there are fundamentally conflicting views, he stated his personal stance clearly: the income tax should be viewed as a mechanism for boosting economic activity for businesses and workers, rather than primarily being an instrument of redistribution.
Shifting topics, Merz backed the SPD’s initiative to tie the legal retirement age to the number of contribution years. He singled out a point made by Labor Minister Bärbel Bas (SPD), emphasizing that the years of paid contributions, rather than mere elapsed lifespan, should be the deciding factor. This model, he argued, is an element of pension insurance that he finds acceptable.
However, Merz rejected the concept of automatically linking retirement to life expectancy. He argued that such an automatic link would create a static retirement age and lead to what he called an unjust situation. He questioned how one could justify that someone who began their career late-for instance, after completing university in one’s early thirties-should retire at the same age as someone who started as an apprentice at sixteen.
Regarding the pension debate, he declined to discuss specific details prematurely, advising that the appropriate time to speak is after the Commission submits its official report, which is expected in late June.