Federal Finance Minister Lars Klingbeil (SPD) made it clear at the DGB Federal Congress in Berlin that there can be no tax reform without higher burdens for top earners. "We will push in this direction," said Klingbeil, referring to the need to reform income tax to alleviate the financial burden on individuals earning between 2,500 and 4,000 euros.
Klingbeil stated, "A society in which inequalities increase is not a productive society." He pointed out that living costs have risen in recent years and called for relief for the middle class. "This will only work if those at the top are willing to take on more responsibility," Klingbeil added.
The Vice Chancellor emphasized that he does not want to incite "envy debates," but the government must respond to rising prices. The discussion about tax reform is being closely monitored just before a summit meeting of the coalition. Chancellor Friedrich Merz (CDU) and Labor Minister Bärbel Bas (SPD) will also address the delegates.
The federal government plans to provide relief for citizens due to the sharply rising energy prices caused by the war in Iran. While Merz has also acknowledged the need for income tax reform, he left open whether a compromise within the coalition is possible. He remarked, "Whether we can find a common path is still open."
