SPD demands wealth tax of one percent

More debts, rent caps and now a new tax: The SPD says how and why it would like to burden wealthy Germans more heavily in the future.

Leading comrades at the federal party conference.

DThe SPD wants to reintroduce the wealth tax from a net worth of two million euros. The federal party conference in Berlin decided this Sunday that the tax rate should be one percent and increase to 1.5 and two percent for the so-called super-rich.

According to the Social Democrats, allowances of two million euros for single people and four million euros for married couples should ensure that the tax burden is “concentrated on particularly rich sections of the population”. SPD tax expert Lothar Binding said that for a married couple with net wealth of 4.2 million euros, wealth tax would be 2000 euros a year or 166 euros a month.

The wealth tax is a question of social justice, it says in the decision. The “strong concentration of assets” from the SPD’s point of view endangers social cohesion and economic dynamism.

The wealth tax has not been levied since a constitutional court ruling in the mid-1990s. At the time, the top judges in Karlsruhe did not criticize the tax itself, but rather the different valuation of assets. Due to old market values, real estate was strongly favored over capital assets such as stocks.

In the 1990s, the wealth tax had last washed the equivalent of around 4.6 billion euros into the coffers of the federal states. According to SPD calculations according to today’s figures, this would correspond to an annual revenue of around nine billion euros.

According to the SPD, the importance of other taxes related to property such as property, inheritance, gift and property transfer tax is comparatively low in Germany. With a share of 1 percent, it is only about half of the average pollution in all industrialized countries.

More debts, rent caps and now a new tax: The SPD says how and why it would like to burden wealthy Germans more heavily in the future.

Leading comrades at the federal party conference.

DThe SPD wants to reintroduce the wealth tax from a net worth of two million euros. The federal party conference in Berlin decided this Sunday that the tax rate should be one percent and increase to 1.5 and two percent for the so-called super-rich.

According to the Social Democrats, allowances of two million euros for single people and four million euros for married couples should ensure that the tax burden is “concentrated on particularly rich sections of the population”. SPD tax expert Lothar Binding said that for a married couple with net wealth of 4.2 million euros, wealth tax would be 2000 euros a year or 166 euros a month.

The wealth tax is a question of social justice, it says in the decision. The “strong concentration of assets” from the SPD’s point of view endangers social cohesion and economic dynamism.

The wealth tax has not been levied since a constitutional court ruling in the mid-1990s. At the time, the highest judges in Karlsruhe did not reprimand the tax itself, but rather the different valuation of assets. Due to old market values, real estate was strongly favored over capital assets such as stocks.

In the 1990s, the wealth tax had last washed the equivalent of around 4.6 billion euros into the coffers of the federal states. According to SPD calculations, this would correspond to an annual revenue of around nine billion euros according to today’s figures.

According to the SPD, the importance of other taxes related to property such as property, inheritance, gift and property transfer tax is comparatively low in Germany. With a share of 1 percent, it is only about half of the average pollution in all industrialized countries.