Middelberg stressed that a tax reform only makes sense if it provides net relief and is at least partially financed by savings in government spending. A pure redistribution within the tax tariff would not help restore growth.
The coalition plans to reform income tax by January 2027 to relieve small and middle incomes in particular. A higher top tax rate is especially controversial, with the Union warning it would burden many companies.
Middelberg pointed to the large savings potential in federal subsidy programs: seven years ago, the federal government spent 8.3 billion euros on financial aid; this year, 59.6 billion euros are planned. Many of these programs are of questionable effectiveness.
Source: Stadt München
