Anke Rehlinger, the mayor‑premier of Saarland and a member of the SPD, expresses skepticism about a possible rise in the value‑added tax. “I feel quite uneasy about it. It would make life even more expensive for everyone already” she told “Handelsblatt”.
Rehlinger is more inclined to ease the tax burden on 95 % of taxpayers through adjustments to the income tax, but she also believes higher earners should contribute a touch more.
The federal government is currently discussing internally the possibility of raising the standard VAT rate from 19 % to 21 %. In return, the reduced 7 % rate-and taxes and levies on earned income-could be lowered.
Regarding a proposal by Finance Minister Lars Klingbeil to abolish the marriage‑splitting system, Rehlinger finds the idea fundamentally sensible, while stressing that those who presently benefit from the split should be able to keep it.
To boost revenues, she calls for a higher inheritance tax. “It is unfair that someone inheriting a few hundred thousand pays a higher percentage of taxes than someone inheriting many millions. Adjusting this would be tax enforcement, not a tax hike”.
On Friday, the SPD will outline its reform programme for the coming months at a conference.