Özdemir will earlier reduction of corporate tax - instead of expanding parental allowance - Germany's Greens push bold tax and pension reforms under Özdemir's plan
Green Party lead candidate Cem Özdemir, running in Baden-Württemberg's state election, has called for bringing forward the corporate tax cuts currently scheduled for 2028. "I believe it is right to reduce corporate taxes still this year," Özdemir told Handelsblatt in remarks released on Monday. To offset the cost, the Green politician proposed delaying the planned expansion of the "mother's pension" benefit.
"Handing out election gifts at the expense of future generations is not a priority," Özdemir stated. He saw no justification for introducing the mother's pension a year earlier than agreed in the coalition treaty. The federal government's black-red coalition had recently decided to bring forward the measure to 2027. Under current plans, the corporate tax reduction is set to be phased in from 2028 onward, as agreed by the CDU/CSU and SPD.
Özdemir also demanded reforms to inheritance tax, arguing that it was unacceptable for heirs of a €26 million business fortune to potentially pay no tax at all.
On pensions, he advocated for greater flexibility. "Rigid retirement ages are no longer fit for purpose," he said, suggesting that fixed pension eligibility should be abolished altogether. "We should differentiate by occupation and years of contributions," he proposed instead. He also criticized the penalty-free pension after 45 years of contributions—the earlier "pension at 63" scheme.
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