Call for Extended Inheritance Tax Call for Extended Inheritance Tax
The head of the economic experts has called for a comprehensive reform of the inheritance tax in a recent statement. In her argument, she emphasized the necessity of making the taxation of inheritances fairer in order to strengthen social cohesion in society. She argued that an increase in the inheritance tax, particularly on large fortunes, is essential to promote wealth redistribution and relieve public finances.
In her analysis, the economic expert referred to the growing wealth inequality in Germany. She made it clear that the current inheritance tax regulation mainly benefits wealthy families, while small and medium incomes are hardly burdened at all. The proposal to revise the tiered structure of the inheritance tax was seen as a possible step to distribute the tax burdens more fairly. This would mean that large inheritances should be taxed more heavily, while smaller inheritances below a certain exemption amount would largely remain exempt from taxation.
Additionally, she noted that a higher inheritance tax could also be sensible to equip the public administration with additional funds that could be used for social projects and investments in education and infrastructure. This could promote economic growth in the long run and increase equality of opportunity. The expert made it clear that the reform, however, must be implemented with great care to avoid potential negative impacts on the economy and wealth creation in Germany.
The debate over the inheritance tax has gained intensity in recent years, especially in light of the sharply increased wealth of certain segments of the population. In public discussions, comparisons are often made to other European countries where the inheritance tax is significantly higher. The economic expert urged policymakers to develop a comprehensive concept for reforming the inheritance tax and to engage in a societal discussion about the fairness of the current system.
The themes of justice, redistribution, and the role of the state in the economy were regarded as central by the head of the economic experts and urgently required a political response.She emphasized that all stakeholders, including citizens, should be involved in this process to create broad acceptance for potential reforms. The debate on inheritance tax remains highly relevant and could provide crucial impulses for future fiscal policy in Germany.
