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First CDU Budget Politician Signals Openness to Higher Top Rate if Social Reforms Follow

The CDU remark lands in a fight over closing a projected €30 billion 2027 shortfall.

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Overview

  • CDU budget expert Andreas Mattfeldt told BILD he could accept raising the 45 percent surcharge for top earners if sweeping social-welfare reforms are implemented.
  • The SPD keeps higher levies for top earners and wealth on the table, with Finance Minister and party leader Lars Klingbeil declining to rule out tax increases.
  • CSU leader Markus Söder rejects any tax hikes and has floated regionalizing the inheritance tax so Bavaria could lower rates.
  • Schleswig-Holstein’s Minister President Daniel Günther opposes Söder’s regionalization idea and says a fresh inheritance‑tax debate is the wrong priority.
  • Economists diverge on the path forward, with ifo’s Clemens Fuest warning higher taxes would sap investment and DIW’s Marcel Fratzscher urging increases, including on property and inheritances.