Germany's CDU tax reform sparks outrage over wealthy benefits
Has Germany's conservative Union bloc suddenly rediscovered its love for the working class? Just days ago, the party and its neoliberal allies sparked outrage with demands to abolish the right to part-time work and cut dental prosthetics from public health coverage. Now, in a surprising turn, CDU General Secretary Carsten Linnemann is pushing for an income tax reform—ostensibly to ease the burden on employees. But fear not: nothing will actually change. A closer look reveals his proposal is little more than a hollow promise for most workers.
Linnemann wants to raise the threshold for the top tax rate from the current €68,000 gross annual income to €80,000. Yet the median full-time salary in Germany stands at around €47,000—meaning the vast majority of employees would never benefit from his plan. What's more, joint taxation for married couples and a slew of tax deductions already ensure that only a small, privileged minority ever pays the top rate. Instead, Linnemann's proposal would primarily benefit the super-rich, reducing the share of their income subject to the highest tax bracket.
Finance Minister and SPD leader Lars Klingbeil's vow to draft a tax reform to relieve low- and middle-income earners does little to change the picture. After all, what these groups need most is well-funded public infrastructure and a robust social safety net—not just a few extra euros in their pockets each year.
Worse still, Linnemann's plan would deepen the budget shortfall looming from next year onward, widening the gap to an estimated €60 billion by 2028—savings that will have to come from somewhere. The current assaults on the welfare state would be just the beginning. Tax cuts for the wealthy would only intensify distributional conflicts, further polarizing society.
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