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Germany’s Economy Minister Reiche Rules Out Tax Hikes, Rejects Higher Inheritance Tax

Her stance highlights a coalition rift over inheritance tax ahead of a Constitutional Court decision.

Overview

  • Economy Minister Katherina Reiche called tax increases "gift" for the economy and said policy should prioritize growth and lower burdens on labor income.
  • Reiche voiced skepticism about raising the inheritance tax, warning that sharper levies could prompt companies to leave Germany.
  • She cited structural labor issues, including many statutory vacation days, low average weekly hours and high sickness rates, to argue for making work pay.
  • Chancellery chief Thorsten Frei cautioned that inheritance tax rules are complex and that tougher terms could force sales during family business successions.
  • CDU/CSU leader Jens Spahn recently spotlighted wealth inequality and pointed to an expected Constitutional Court ruling that could trigger a tax rewrite, which SPD figures welcomed.