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SPD slams Union's tax plan as financially flawed and socially unjust

A bitter tax battle erupts in the Bundestag. The SPD warns the Union's plan risks widening inequality—and failing constitutional tests.

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.

SPD slams Union's tax plan as financially flawed and socially unjust

Wiebke Esdar, deputy leader of the SPD parliamentary group in the Bundestag, has criticized the tax proposal put forward by Union finance policy experts Florian Dorn (CSU) and Yannick Bury (CDU). Speaking to broadcaster Welt on Thursday, Esdar dismissed the plan as lacking serious funding mechanisms. "I don't want to pull the wool over anyone's eyes," she said. "I simply don't see where the socially equitable offsetting revenue is supposed to come from."

The deputy SPD faction leader also rejected the proposed elimination of the solidarity surcharge. "To present a constitutionally sound budget, we have to make savings proposals," she argued. "But if you look at the plan these two Union lawmakers have put forward, there's a catch—and that's the €30 billion in additional costs they can't seriously explain how to fund." She added, "So there's still a lot of work ahead of us on that front."

Esdar emphasized that her party was committed to providing tangible and substantial relief for low- and middle-income earners. "But you have to say how you'll pay for it. Staying vague just won't cut it in the end." She called the proposal "a bit of a bait-and-switch through the back door, to be honest."

She further argued that the Union lawmakers' plan to reduce the solidarity surcharge was neither socially just nor defensible. "If we're serious about easing the burden on low- and middle-income households—and we are serious—then we can't just scrap the solidarity surcharge, which only the top 10 percent of earners even pay anymore. Stronger shoulders need to bear more of the load."

Esdar also insisted that the proposed wealth tax increase in the paper was not enough. She believes higher earners in the top income tax bracket should also contribute more. "As a member of parliament, I'll say this clearly: I want this income tax reform to mean that those of us with high incomes—lawmakers included—pay our fair share." She stressed that "at the very least, the outcome must be that the highest earners contribute more," though she acknowledged that "the exact percentages for each group will have to be worked out."

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