The Social Democratic Party (SPD) is signaling a significant shift in its economic policy, promising a comprehensive reform of inheritance tax laws by 2026 that aims to place a heavier burden on the wealthiest heirs. SPD parliamentary group leader Matthias Miersch, in remarks to the “Rheinische Post” declared the party intends to position itself as a “reform party” focused on both easing the tax burden on lower and middle incomes and overhauling the existing inheritance tax system.
The impending reform is partially driven by a looming decision from the Federal Constitutional Court, expected in the first quarter of next year, which is anticipated to necessitate adjustments to current legislation. However, Miersch emphasized that the SPD’s initiative extends beyond merely reacting to the court’s ruling, aiming to establish a “balanced and future-proof” framework.
A key element of the planned reform involves increasing the taxation of very large inheritances. Miersch directly addressed the issue of loopholes allowing exceptionally wealthy heirs to avoid significant tax liabilities while “normal” heirs are more heavily taxed. He stated that the SPD intends to “confront this directly” arguing that wealthier heirs have a responsibility to contribute more to the common good – a matter of fundamental fairness.
When questioned about potential negative economic consequences of increased taxation, Miersch dismissed such concerns as a “worn-out counterargument from the wealthy in Germany” pointing to examples from other countries that demonstrate the possibility of protecting businesses while still implementing fair taxation of extreme fortunes. He clarified that the reform’s focus will not extend to inherited properties like apartments or family homes, but specifically target substantial million-dollar inheritances. The SPD is expected to present its detailed concept in the near future, setting the stage for a potentially contentious debate about wealth distribution and the role of inheritance in perpetuating economic inequalities.