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SPD Pushes Inheritance-Tax Fight to States as Union Calls Plan 'Mausetot'

The Social Democrats are pressing the issue in state forums despite firm conservative resistance.

Overview

  • The Schleswig-Holstein Landtag will debate the issue after an SPD motion urging the state government to support federal reform that includes a €1 million lifetime personal allowance and a €5 million business allowance.
  • CDU/CSU leaders have declared the proposal politically dead, saying the current law is constitutional and warning that changes would raise taxes on business assets.
  • SPD figures defend the plan as fairer and simpler, saying 85% of companies would be exempt and allowing heirs to stretch tax payments over 20 years on business transfers.
  • Business groups and the Union caution that family firms could face heavier burdens under progressive rates, which the SPD has not yet published in full detail.
  • A forthcoming Federal Constitutional Court ruling hangs over the timetable, and any overhaul would affect revenues that accrue to Germany’s Länder.