Reiner Holznagel, president of the German Taxpayers’ Federation, criticized a proposal by the Institute of German Economic Research (DIW) to raise the top income‑tax rate from 42 % to 49 %. “A reform of the income‑tax tariff is overdue” he told the Funke Media Group newspapers in Wednesday editions. He argues that it would be sensible to let the top rate only apply to incomes above 80 000 €-as the Chancellor’s party wants-or above 90 000 €, as the DIW suggests. But tightening the top rate to 49 % immediately would be a step backward.

Holznagel warned that the move would “destroy the German economy” and urged the Union not to settle for “sloppy compromises”. Although the DIW’s idea received some support in the Union parliamentary group, Holznagel remains firmly opposed to it.