The SPD proposes tax adjustments and incentives for electric vehicle ownership.
Ahead of the upcoming federal election, the SPD is gearing up for their campaign. Their main focus is economic policies, aiming to score points in this area.
The SPD is planning to propose a significant overhaul in the income tax system. This reform would see a reduction in taxes for the vast majority of taxpayers, approximately 95 percent, achieved by increasing taxes on the top 1 percent of income earners. This detail is outlined in a draft resolution set to be approved during the SPD executive board retreat, scheduled for tonight. The resolution states, "This reform will provide individuals with more financial flexibility, boosting their purchasing power. This in turn will stimulate the economy from the bottom up and the middle class."
The two-day retreat, taking place at the party headquarters in Berlin, marks the beginning of the SPD executive board's strategic planning for the scheduled federal election on September 28, 2025. The six-page draft resolution, titled "We fight for Germany's future: Boost the economy, secure jobs, relieve employees," also champions a minimum wage of 15 euros, measures to encourage electric vehicle sales, and a reform in debt rules.
Tax incentives for investors
To encourage investment in Germany, the SPD proposes a "Made in Germany" bonus. A general reduction in corporate taxes is deemed "not targeted enough." Instead, the Social Democrats propose to "link comprehensive special depreciation and tax incentives for companies to investments in future industries and quality job creation in Germany," as mentioned in the draft resolution. "Those investing in Germany will reap tax benefits."
To foster electric vehicle sales, the SPD suggests examining a purchase premium. Additionally, they aim to implement an electric vehicle quota for leasing providers and promote electric company cars favorably through taxes.
The SPD heavily criticizes the CDU's economic policy, as led by their chairman and chancellor candidate Friedrich Merz, in the paper. "Those who label employees in Germany as lazy and undermining their right to decent wages and retirement benefits have lost the respect of the genuine workers who keep our nation running daily through their dedication," the paper asserted. "This inclusive criticism extends to the millions of employees with migration backgrounds and their families, who face daily discrimination as the 'problem' by the CDU and CSU."
At the last federal election, the SPD garnered around 26 percent of the votes. In recent polls, they are lagging behind the Union and are almost at par with the AfD.
The SPD's draft resolution includes a proposal for tax cuts, aiming to provide tax relief to the vast majority of taxpayers through increased taxes on the top 1% income earners. This reform, they believe, will boost individuals' purchasing power and stimulate the economy from the bottom up and the middle class.
Furthermore, to encourage investment in Germany, the SPD proposes a "Made in Germany" bonus and links comprehensive special depreciation and tax incentives for companies to future industries and quality job creation, promising tax benefits for those investing in Germany.
