Dietmar Bartsch, leading figure in the left-wing parliamentary group, has proposed a "climate wealth tax" following the Court of Constitutional Justice's ruling on the 60 billion euro budget allocation. With the Karlsruhe verdict, social spending cuts are no longer on the table, Bartsch told Redaktionsnetzwerk Deutschland. Instead, he suggests targeting the fortunes of multi-millionaires and billionaires to revamp Germany.
Last week, the court deemed invalid the reallocation of the 60 billion euros assigned for the 2021 budget to tackle the coronavirus crisis, with funds dedicated to climate protection and economic modernization. The FDP conversely proposed slashing social benefits in light of this.
According to Oxfam's latest report, presented last week, this top 1% of the world's wealthiest individuals was responsible for climate-harming emissions equal to those produced by the poorer two-thirds of humankind. This revelation supports Bartsch's claim that the affluent should shoulder the financing of climate protection and modernization.
Bartsch insists on finding alternative sources for savings, since the Bundeswehr's special fund, a contentious issue among the Left Party, should be reevaluated and downsized accordingly.
The wealth tax to address climate and wealth disparity is gaining traction. By investing in green solutions and targeting accumulated wealth among the richest, revenue can be generated while offsetting the costs of climate damage. As per an estimate, a 1% wealth tax in Germany with a 1 million euro personal allowance could generate up to 35 billion euros in revenue.
Among the political parties advocating for a wealth tax reintroduction, the SPD, Greens, and Left Party are prominent, as is the BSW. Moreover, German Institute for Economic Research (DIW) Director Marcel Fratzscher supports the proposal, as he believes the tax can promote sustainable job creation and bolster economic growth for future prosperity. Additionally, 65% of survey respondents in a recent RedaktionsNetzwerk Deutschland (RND) poll back the introduction of a wealth tax to finance vital investments, including decarbonization initiatives.
