CDU faction leader Jens Spahn advised Finance Minister Lars Klingbeil (SPD) that the tax reform proposal should not be presented to the public unilaterally. Speaking to the “Rheinische Post”, Spahn stressed the necessity of working together, stating that their offer to the SPD is to jointly develop a proposal and then present it together, thereby preventing public disagreements. Both parties share the stated goal of reducing taxes for smaller and middle incomes, giving citizens more financial latitude.
Spahn challenged the current financial premise, noting that it is not feasible merely to increase taxation by five percent to achieve a ninety-five percent reduction. According to the CDU politician, such a measure would result in “irrationally high tax rates of 60 percent”. For the bulk of the tax relief, he argued that supplementary financing would be needed from sources outside the existing tax system.
He outlined the CDU’s clear prerequisites for the reform: the top marginal tax rate should only take effect later, ensuring that smaller and medium earners are relieved while overtime compensation does not immediately fall into the highest tax bracket. Furthermore, the plan aimed to flatten the income distribution within the middle class.
Regarding necessary savings, Spahn speculated that the process might require a “lawnmower method”-meaning implementing broad, systematic cuts across many subsidies-a process he acknowledged would hurt many areas but which possessed a “simple, comprehensible logic”.
Spahn also voiced skepticism about the continuation of current fuel subsidies. He added that diesel and gasoline prices would be significantly higher if the 17-cent reduction had not been implemented, partly due to the strategic location near the Strait of Hormuz. He suggested that a joint review of the situation should take place in mid-June, concluding with a clear acknowledgement of the fiscal reality: “The bazooka is empty”.