Berlin’s governing mayor, Kai Wegner (CDU), announced that an asset tax is necessary, stating that Germany requires a comprehensive package involving tax reform, spending cuts, and contributions from the wealthy. Speaking to RTL and ntv’s “Frühstart” program on Tuesday, Wegner stressed that addressing the asset tax would be unavoidable, ensuring that those with significantly higher incomes contribute in a spirit of solidarity.
At the same time, Wegner insisted that the tax reform must result in noticeable financial relief for the average citizen. He acknowledged the struggle people face in affording their weekly groceries due to rising food prices. While he did not specify concrete income thresholds for higher tax rates, he warned against placing undue burdens on skilled workers or medium-sized businesses. He emphasized that highly skilled tradespeople or master bakers should not be subject to the top tax rate, arguing that compensation must be commensurate with effort. Instead, the focus should be on top incomes and individuals with substantial wealth who should contribute more significantly.
This position places Wegner at odds with the current stance of his own party, as the CDU generally opposes an asset tax. Both the CDU party chief and former Chancellor Friedrich Merz have consistently rejected such a levy. Conversely, the SPD has advocated for the reintroduction of an asset tax for several years.
According to Article 106 of the Basic Law, tax revenue from an asset tax belongs to the federal states. However, this tax has not been levied since 1997, following a ruling by the Federal Constitutional Court that declared the calculation method used at that time unconstitutional.