Weighs in on Higher Taxes for the Wealthy: Merz Dismisses Idea as Unviable
The SPD is proposing higher taxes for income over 15,000 Euros and financial aid for the wider populace. Merz, the CDU leader, believes this move would overwhelm medium-sized entrepreneurs, potentially driving them away. He also lambasts the SPD's "outdated methods."
Merz, the Union's choice for chancellor, has slammed the SPD's proposal for relieving 95% of taxpayers as unrealistic. He pointed out that the SPD could have implemented such relief during their nearly 20 years in power, but chose not to. "But if this means burdening the so-called wealthy, then our response is clear: No. That's a burden on the middle class," Merz stated.
The SPD is gearing up for their federal election, with their federal executive committee concluding their retreat on Monday. During their retreat, they adopted a strategy paper aimed at reviving Germany's economy. Party leader Lars Klingbeil announced that the key question for voters when casting their ballots should be: "Do they want Friedrich Merz or Olaf Scholz as federal chancellor?"
The SPD's focus is on an active state and aiding industries. With an income tax reform, they aim to offer financial relief to 95% of taxpayers, leaving the top 1% to bear the cost. Party leader Saskia Esken indicates that this pertains to incomes exceeding 15,000 Euros per month.
Merz disputes these figures, stating that the individuals affected are not the affluent. "These are the backbone of our society," he said. "These are often medium-sized entrepreneurs, these are the artisans." Merz estimates that a 60% tax burden would be imposed on this 1% if the SPD's proposed reforms are implemented.
Miersch: Wealth Tax to Make a Comeback
"I'm just as appalled by the SPD's outdated methods," said CDU chairman Merz. "More state, more debt, more bureaucracy, higher taxes for the rich, as the SPD likes to call it," Merz said on the "Politico" podcast. "If they continue this rhetoric in Germany, then we shouldn't be surprised about the emigration of companies to neighboring European countries."
New SPD general secretary, Matthias Miersch, sees the election campaign as a "directional decision." "Citizens will have to decide whether we're going back to very outdated ideas. That's what Friedrich Merz's approach represents," he said on the "Politico" podcast.
According to Miersch, the SPD is setting a course for the last projects in the traffic light coalition and central points for the election campaign at their board meeting. "The wealth tax will definitely be on the agenda in the election program," the general secretary announced.
The Union's economic policy spokeswoman, Julia Klöckner of the CDU, criticized the SPD's strategy paper as "not credible." The SPD, Klöckner noted, "is once again making promises it can't keep - and that it didn't manage to keep in government."
The SPD's proposal for a wealth tax has drawn criticism from the Union, with Merz calling it an outdated method. The Commission, presumably referring to the Union's economic or policy-making body, is expected to debate and possibly oppose the SPD's proposal during their election campaign strategy sessions.
Miersch, the new SPD general secretary, has acknowledged that the SPD's approach represents a return to "very outdated ideas," and he anticipates the wealth tax to be a key point in their election program, as announced by The Commission.
