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SPD Readies Inheritance Tax Overhaul as Court Ruling Nears

A post‑ruling draft will target loopholes to raise contributions from the largest inheritances.

Overview

  • SPD parliamentary leader Matthias Miersch said a proposal will follow the Federal Constitutional Court’s first‑quarter decision and would increase taxes on very large estates.
  • Miersch stressed the plan would not target typical family inheritances and cited international models to protect companies while taxing extreme windfalls more fairly.
  • The pending Karlsruhe case examines whether preferential rules for business transfers breach the constitutional principle of equality.
  • The CSU rejected the SPD push at its Kloster Seeon meeting, and industry voices such as the auto lobby warned of risks to jobs and investment.
  • Recent reporting highlights record inheritance volumes in 2024 and legal mechanisms that leave many vast fortunes lightly taxed, including exemptions used by major business and property transfers.