Merz Says Tax Limits Reached as SPD Pushes for Higher Burdens
German Chancellor فريدريش ميرتس says the country has reached the limits of what high earners can be taxed, rejecting plans by the Social Democratic Party (SPD) to raise the top tax rate. His comments have triggered a sharp political dispute over fairness and economic performance.
The CDU/CSU wants to shift the 42 percent top tax rate to apply only from an income of 80,000 euros instead of 68,500 euros, easing pressure on middle-income earners. The SPD says it will only agree if higher earners pay more to compensate. ميرتس argues that the tax burden on upper incomes has already reached around 50 percent, a level once described by هيلموت كول as the point where “socialism begins.”
SPD leaders reject this view. Parliamentary manager ديرك فيزه insists that higher incomes must continue to shoulder more of the burden, calling it fair rather than excessive. Bremen’s mayor أندرياس بوفنشولت says CDU tax plans would benefit top earners far more than average workers, a claim that has fueled public controversy.
Supporters of ميرتس counter that the tax system itself already concentrates the burden on high earners. The top ten percent of taxpayers contribute more than half of all income tax revenue, while the bottom half accounts for only six percent. Critics say ignoring this fact encourages social resentment and distorts the debate about who really pays for public spending.
Economists warn that tax cuts without spending cuts are unrealistic. Ifo Institute president كليمنس فوست has said any serious tax relief must be matched by reduced expenditure. Economist فيرونيكا غريم also cautions that rising debt interest will limit future political options. The dispute reflects a long-running pattern since the era of غيرهارد شرودر, with politicians promising benefits while avoiding savings, and revives an old warning by مارغريت تاتشر: eventually, there is no more other people’s money to spend.