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CDU Declares SPD Inheritance-Tax Plan 'Dead' as Coalition Clash Intensifies

SPD touts million-euro allowances with 20‑year deferrals to focus the levy on very large estates.

Overview

  • CDU finance spokesman Fritz Güntzler and Mittelstandsgruppe chair Christian von Stetten labeled the SPD concept "mausetot," asserting it lacks public support and reform need.
  • The SPD package proposes a lifetime €1 million personal allowance, a €5 million business exemption, progressive rates above those thresholds, and an option to spread payments over up to 20 years.
  • Primary residences used by heirs would remain tax‑free under the SPD plan, which the party says would shift the burden toward very large inheritances.
  • SPD parliamentary leader Matthias Miersch defended the proposal, saying about 85 percent of companies would be exempt and that drafting now allows incorporation of an expected Constitutional Court ruling.
  • Union figures and business groups warn the approach raises taxes on business assets and could strain family firms, with Jens Spahn criticizing the timing but conceding that closing loopholes poses a fairness issue.