Overview

• Economics Minister Katherina Reiche called tax increases in a weak economy “poison” and opposed raising the inheritance tax, warning of decisions by companies to relocate.
• Reiche urged cutting the burden on earned income to spur growth, framing lower income taxation as part of a broader plan to strengthen the business location.
• Kanzleramtschef Thorsten Frei cautioned that tougher inheritance rules could push family businesses into sales during generational handovers and said firms need planning certainty.
• SPD General Secretary Tim Klüssendorf pressed for reform to boost fairness, backing a lifetime allowance model that would ask larger heirs to contribute more.
• DIW tax expert Stefan Bach floated an €800,000 lifetime allowance as a compromise, while the debate—sparked by Jens Spahn’s comments on wealth distribution—has exposed coalition tensions.