SPD and Union clash over Germany’s inheritance tax reforms for businesses
A dispute over inheritance tax plans has erupted between the SPD and the Union bloc. Matthias Miersch, the SPD’s parliamentary group leader, defended his party’s proposals while rejecting criticism from opponents. The row centres on how businesses and heirs should be taxed when assets are passed down.
The SPD’s plan would exempt 85% of German businesses from inheritance tax. Heirs would also avoid an immediate financial strain, as tax payments could be spread over 20 years. Miersch argued that this approach balances fairness with economic reality.
His comments came in response to criticism from the Union bloc, which includes the CSU. Bavaria’s Minister-President, Markus Söder, had earlier proposed regionalising inheritance tax rules—a move Miersch dismissed as 'unsolidary'. Speaking at a cabinet press conference in Bamberg on 12 January 2026, Söder floated the idea of letting states set their own rates. Miersch countered that economic conditions differ widely across Germany. He insisted that a uniform system, rather than regional variations, would better address these disparities.
The SPD’s inheritance tax model aims to shield most businesses while easing the burden on heirs. Miersch’s rejection of Bavaria’s regional proposal keeps the debate alive. The outcome will shape how future inheritances are taxed nationwide.
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