Despite a sharp downgrade in Germany’s growth outlook, the SPD insists on retaining its push for higher taxes on high earners, the wealthy, and heirs.
SPD deputy parliamentary leader Wiebke Esdar told the “Rheinische Post” that the party sees tax fairness and fiscal consolidation as inseparable goals, arguing that the current tax system is outdated. “Those with little pay too much, and those with plenty pay too little. This unjust system undermines our economy” she said. As a first step, Esdar calls for an overhaul of the income tax that would relieve 95 % of workers, while allowing higher‑earning individuals and even parliamentarians to contribute more.
The party rejects raising the value‑added tax, warning that it targets people who already have to stretch every euro and that it would dampen domestic demand during a fragile economic period. “Before we even talk about that policy, we must explore alternatives – reviving a wealth tax for fortunes in the millions and billions, reforming inheritance tax to be more equitable, and adjusting the capital gains tax” she added.
In addition, the SPD supports serious cuts to public spending. Meanwhile, research institutes have already halved their growth forecast to 0.6 % for this year, citing the Iran war as a major economic drag.