Overview
- The SPD proposal sets a lifetime €1 million personal exemption and a €5 million company exemption, ends current business‑asset privileges, introduces progressive taxation above the thresholds, and allows up to 20 years to pay if jobs are secured.
- Speaking to business leaders in Halle, Chancellor Friedrich Merz warned the debate risks unsettling small and midsize firms and said the government should hold off until the court’s expected decision this year.
- Business associations and some economists argue the €5 million cap would be quickly exceeded for many firms, citing analyses that tens of thousands of companies could be affected, including roughly 55% of larger family businesses.
- SPD faction vice chair Wiebke Esdar counters that most family enterprises would fall below the new threshold and notes KfW data showing a typical midsize company sale price near €500,000, with tax deferral intended to protect jobs and liquidity.
- Several entrepreneurs and DIW’s Marcel Fratzscher back tighter rules on large inheritances, with suggestions such as long‑term payment plans or a flat levy for business heirs, while key details like exact rates and anti‑avoidance rules remain unsettled.