The Social Democratic Party proposes reintroducing the wealth tax.
In the upcoming federal election campaign, the Social Democratic Party (SPD) intends to revive discussions on wealth distribution by proposing higher taxes for the super-wealthy and lower taxes for average earners. More specifics regarding their plans are emerging.
According to Joachim Post, SPD's deputy parliamentary leader, the party aims to impose a higher income tax on extremely high incomes, as well as introduce a fair inheritance tax, a new wealth tax, and a substantial overhaul of the debt rule. The ultimate objective is to ensure that approximately 95% of taxpayers reap the benefits of lower income taxes. "This pertains to the working middle class, to working families in this nation," said Post.
As early as 2021, during the federal election, the SPD advocated for reintroducing the wealth tax. The party's platform stated, "Individuals with extraordinarily high wealth should contribute more substantially to financing our community. Consequently, we will implement, among other measures, a moderate, uniform tax rate of one percent for exorbitant wealth." This tax will primarily affect the extremely wealthy, while high personal allowances will exempt businesses from taxation.
A majority of Germans express support for reintroducing the wealth tax, as indicated by a Forsa survey conducted in early July for "Der Spiegel." According to the survey, 62% of citizens favor a wealth levy for private individuals and companies exceeding one million euros. The wealth tax has not been levied since 1997 following a ruling by Germany's Federal Constitutional Court.
Over the weekend, the SPD executive board workshopped a strategy paper aimed at combating economic downturn in Berlin. The paper represents the first step in charting the course for the federal election campaign. In it, the party leadership advocates for a comprehensive income tax reform to benefit 95% of taxpayers, which requires imposing a heavier tax burden on the top 1% of income earners, representing those with more than 15,000 euros in monthly income.
The SPD's strategy paper, discussed over the weekend, includes proposals for a tax reform aimed at combating economic downturn. This reform involves implementing a heavier tax burden on the top 1% of income earners, who earn more than 15,000 euros monthly, in order to benefit 95% of taxpayers through comprehensive income tax reform. Additionally, reintroducing the wealth tax, as the SPD advocated for in the 2021 federal election, is a key part of their tax reform plan, with a moderate, uniform tax rate of one percent planned for individuals with extraordinarily high wealth.
