Overview

• Thorsten Frei argues the levy is highly complex, calls it a matter of structural policy, and says companies need planning certainty.
• His stance counters CDU colleague Jens Spahn, who recently opened a discussion on reforms to improve perceived fairness in wealth distribution.
• Critics of the current system note that smaller inheritances are often taxed while very large transfers to business heirs can remain largely exempt.
• Germany exhibits pronounced wealth inequality, with the richest tenth holding about 60 percent of private assets and inheritances playing a growing role.
• A case before the Federal Constitutional Court on preferential treatment for firm heirs is pending, with a ruling expected this year that could force policy changes.