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Germany's Union faction opens door to higher taxes for top earners amid reform push

A surprising shift in Germany's tax debate could reshape economic policy. Will higher earners foot the bill for crisis reforms?

The image shows a drawing of a building with a lot of plans on it, which is the floor plan of the...
The image shows a drawing of a building with a lot of plans on it, which is the floor plan of the former office of the German Chancellor of the Federal Republic of Germany. The paper contains detailed drawings and text, providing a comprehensive overview of the building's layout.

Berlin. Steffen Bilger, the Union faction's first parliamentary manager, has signaled openness to discussing an increase in the top income tax rate as part of broader tax reforms.

Germany's Union faction opens door to higher taxes for top earners amid reform push

"If we want this to be a major overhaul, we naturally have to address the question of how to fund it," Bilger told RTL and ntv on Tuesday. "We're not shutting down any debate on this—though, in my view, now is hardly the time for tax hikes." He added, "We believe far more changes are needed than what was agreed in the coalition treaty, because the crisis is simply too severe and the global impact too immense."

Bilger acknowledged that if the Union demands more concessions from the SPD, it is understandable that the coalition partner would expect reciprocity in return. "Then it comes down to striking a good overall package," he said, "but the priority must be reviving the economy—and for that, we need reforms."

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