Skip to content

CDU backs bold tax reform to reshape Germany's fiscal future

A radical tax overhaul divides opinion—but CDU leaders say it's the fix Germany needs. Could this be the breakthrough for fairer fiscal policy?

The image shows an open book with handwriting on it, which is likely a document from the German...
The image shows an open book with handwriting on it, which is likely a document from the German Federal Republic of Germany. The text on the paper is likely related to the document, and there are watermarks at the bottom of the image.

CDU backs bold tax reform to reshape Germany's fiscal future

Berlin. CDU Secretary General Carsten Linnemann has welcomed a tax reform plan proposed by two conservative lawmakers and expressed openness to raising the top rate for high earners. "This reform would be a breakthrough in the current tax debate," he told Bild. "It would send exactly the right signal that things in Germany are moving in a positive direction."

Linnemann was responding to a proposal by finance policy experts Yannick Bury (CDU) and Florian Dorn (CSU). Under their plan, the top income tax rate of 42% would apply only to earnings above €85,000 gross, the solidarity surcharge would be abolished, and the rate for the wealthiest taxpayers would increase from 45% to 47.5%. The overall relief is expected to total between €25 and €30 billion.

Addressing how the reforms would be funded, Linnemann said: "Anyone who, in this recessionary phase, boldly cuts subsidies while easing the burden on employees, the middle class, and skilled trades will bring Germany renewed growth and confidence."

CDU financial policy spokesman Fritz Güntzler told Bild that the tax proposal was "an excellent basis for discussions with the finance minister." He noted that safeguarding the tax-free subsistence minimum alone would require relief amounting to tens of billions by 2027. Güntzler called on Federal Finance Minister Lars Klingbeil (SPD) to "present his own tax plan—so we can finally work together on a tax reform." The goal, he said, is to deliver "tangible relief" for workers and businesses by the turn of the year.

Read also:

Latest