German finance ministry dismisses report on tax relief proposals
Germany’s Bundesfinanzministerium (Federal Finance Ministry) has rejected media reports claiming that Finance Minister Lars Klingbeil presented detailed income tax reform proposals during coalition negotiations.
The controversy began after German magazine Der Spiegel reported that two possible tax packages were under discussion. According to the report, one proposal would offer around €10 billion in tax relief, while a more extensive version could reach €20 billion ($21.6 billion) in total reductions. The finance ministry, however, denied that any final proposals had been officially submitted.
A spokesperson for the ministry stressed that the government’s main priority remains easing the tax burden on low- and middle-income earners. They also emphasized the principle that “work and achievement must be made more rewarding,” signaling that future reforms would focus on fairness rather than broad, finalized cuts at this stage.
The Spiegel report also claimed that Klingbeil was considering changes to Germany’s higher tax brackets. This included a possible increase to the so-called “Reichensteuer (rich tax)”, which currently stands at 45 percent and applies to individuals earning roughly €280,000 or more annually. Another proposal reportedly involved raising the income threshold for the 42 percent top tax rate, which currently begins at around €70,000 in taxable income.
Additional speculation suggested that a more expensive reform package could also include an increase in inheritance tax, depending on future legal considerations, including an upcoming ruling from Germany’s constitutional court. These measures, according to the report, could help the coalition secure broader political support, particularly from conservative partners.
Despite the reports, the finance ministry insisted that no decisions have been finalized. Officials confirmed that tax reform discussions within the governing coalition are still ongoing behind closed doors, leaving the future shape of Germany’s tax system uncertain.