SPD wants to increase the burden on heirs to high fortunes - debate at party conference

SPD Pushes for Higher Inheritance Tax on Wealthy Heirs

Party leader Kevin Kühnert slammed the current inheritance tax system in Germany, which sees employees paying around 20% income tax while heirs to large companies enjoy an average inheritance tax rate of just 2.8%. He pointed out that this unequal treatment is an "injustice" to the majority who don't inherit any substantial wealth, limiting their future opportunities.

At the SPD party conference, Kühnert anticipates criticism from delegates over the party's leadership. He emphasized that the conference will not just be about formalities, acknowledging the need for constructive debate about the party's performance and the inheritance tax issue.

Addressing Inequality

The SPD aims to rectify this situation, believing that performance should be rewarded, not privilege of birth. Kühnert reiterated this stance, stating that the tax system should not reward the gene pool but individuals' productivity and contributions to society.

Revolting Against the Status Quo

With Germany's poll ratings showing a diminishing trust in the politics, some party members call for better promotion and marketing of the SPD's achievements. Kühnert agreed, saying that although party members understand the SPD's accomplishments in the coalition, they also recognize the need for the party to step up and fight for its vision to regain public support.

Enriching the Proposal

Several factors contribute to the current inequality in the inheritance tax system:

1. Current Inheritance Tax System:
2. The system currently allows for a range of tax rates (7% to 50%) depending on wealth and relationship, but exemptions and loopholes often lower the effective tax burden on wealthy individuals.
3. SPD's Proposal:
4. The SPD's proposed inheritance tax reforms target those with assets over €100 million, aiming to reduce wealth concentration among the ultra-rich.
5. Impact on Wealth Distribution:
6. The new inheritance tax regime could help redistribute wealth more equitably and reduce the wealth gap.
7. Social Justice:
8. The SPD's initiative aligns with broader social justice goals, ensuring the wealthy contribute to public wellbeing. This approach also addresses the issues raised in "Toxically Rich" that extreme wealth concentration undermines democratic balance.
9. Potential Revenue Generation:
10. The SPD's reforms could potentially generate around €3 billion annually, which could be channelled to social programs and investments.
11. Political Context:
12. The SPD's proposal contrasts with other party suggestions like the AfD's inheritance tax cut, which could further widen the wealth gap. The CDU/CSU, meanwhile, focuses on income and corporate tax reductions, not addressing wealth concentration directly.

Summary

Kühnert raised concerns about the current inheritance tax system, which disproportionately benefits wealthy individuals. The SPD's proposal aims to address this inequality, promoting social justice and more equitable wealth distribution. The party conference will address these issues, with Kühnert welcoming constructive criticism and debate about improving the party's performance.