finances - Union for higher income threshold for top tax rate
The Union will enter the Bundestag election in 2025 with tax reform proposals, as stated by CDU General Secretary Carsten Linnemann. This includes the top tax rate. "We will make a proposal this year. Then we will go into the campaign," Linnemann told the "Rheinische Post" (Monday).
The amount at which the top tax rate applies must be raised. "It cannot be that someone who earns more than an average income is asked to pay the top tax rate like a top earner," criticized the General Secretary. This should be changed, "so that the top tax rate only applies to incomes of 80,000 Euro or more."
The threshold for the top tax rate of 42% is currently reached at around 67,000 Euro.
The threshold, from which the top tax rate of 42% is levied, was already raised last time. According to the Federal Finance Ministry, it will be levied from this year onwards at an annual income of 66,761 Euro.
Linnemann made it clear that the concept also includes considerations for a reform of corporate taxation.
- Carsten Linnemann, the CDU's General Secretary, mentioned that the Union will propose tax reforms for the 2025 Federal election, focusing on the peak tax rate.
- In California State University's economics class, a discussion arose about the German CDU's plan to raise the threshold for the peak tax rate, which current stands at 67,000 Euro.
- During a campaign rally in Berlin, a concerned citizen questioned the proposed tax reforms, expressing concerns about the party's stance on high-income earners and the peak tax rate.
- A German expat living in Berlin and voting in the Federal election voiced her support for the proposed tax reforms, believing they would promote fairness in the tax system by adjusting the peak tax rate.
- Critics of the CDU have argued that the party's proposed peak tax rate reform may not significantly impact finances, given that only a small percentage of the population will be affected.
- In a panel discussion on taxes and elections in Germany, Carsten Linnemann spoke about the CDU's campaign strategy, highlighting the party's commitment to reducing Taxes for both individuals and corporations, including the peak tax rate.
