Lars Klingbeil | Union: Tax increases not with us

Several CDU/CSU politicians have spoken out against a proposal by Finance Minister Lars Klingbeil (SPD) for possible tax increases for high earners and the wealthy. The coalition agreement does not provide for tax increases, but rather rightly aims for tax cuts, said Chancellor's Office Minister Thorsten Frei (CDU) in the Rheinische Post newspaper. As in the past, the coalition will make key decisions together. "The coalition agreement forms our basis for this."

In a Sunday ZDF summer interview, Klingbeil, when asked about tax increases for the wealthy to close the budget gap, did not rule out tax increases for the wealthy. "No option is being taken off the table," he said. "I think it's something where people with high incomes and high assets in particular have to ask themselves: what part are we contributing to making this country more just?"

The CSU sharply criticized Klingbeil. Its general secretary, Martin Huber, told the "Bild" newspaper: "We don't need constant discussions about new taxes, but rather relief and austerity measures." Huber called on Klingbeil to make concrete savings proposals. He argued that there was considerable potential for savings in the budget, for example, with exploding costs for citizens' income tax or billions in subsidies.

The coalition agreement mentions income tax cuts for low- and middle-income earners halfway through the legislative period. However, Klingbeil faces the problem that the 2027-2029 budget plan contains a gap of €172 billion. This is almost €30 billion larger than previously estimated. One reason is the higher maternity pension demanded by CSU leader Markus Söder. "Mr. Söder has also contributed to a larger budget gap with several projects that are important to him," Klingbeil told the CSU. The next step is to sit down together as colleagues and compare the respective proposals in order to narrow this gap.

Meanwhile, the SPD Left Party is putting pressure on the government: "To reject tax increases for the wealthiest people across the board would jeopardize the agreed tax relief for millions of people and the urgently needed growth stimulus," said Wiebke Esdar, spokesperson for the Parliamentary Left Party of the SPD parliamentary group in the Bundestag. A greater contribution from top earners and the super-rich would be a fair solution. With agencies