Berlin – Following the contentious adoption of citizens’ money reform, the Social Democratic Party (SPD) is now intensifying calls for increased taxation of high-net-worth individuals.Both the left-leaning Jusos and the more conservative Seeheimer Kreis factions within the SPD parliamentary group are advocating for revisions to Germany’s inheritance and gift tax laws.
Documents outlining the proposals, prepared by both groups for upcoming discussions, reveal a shared concern over wealth inequality. The Juso motion,slated for their congress at the end of November,frames the issue as a threat to the democratic order,stating,”This contradiction between capital and labor threatens to destroy the democratic and social constitutional state. Experiences of disappointment destroy trust and lead people to turn away from democracy. The answer to this development is consistent class struggle.”
The Seeheimer Kreis paper highlights that over half of private assets in Germany are acquired through inheritance or gifts-a trend that is increasing. They argue this perpetuates inequality of opportunity and fuels social division.
SPD parliamentarian Parsa Marvi, co-author of the Seeheimer paper with Philipp Rottwilm, told the Editorial Network Germany (RND), “It cannot stay as it is: large corporate assets can be transferred almost tax-free, while smaller inheritances are burdened relatively more heavily.” Marvi emphasized the need to appropriately tax very large inheritances to secure jobs, companies, and provide relief to families, urging the coalition government to adopt this as a joint project. Rottwilm also advocated for a worldwide company pension scheme.
Juso leader Philipp Türmer criticized the governing coalition’s pace of progress on social justice issues, stating, “After six months, this coalition is also dancing around many construction sites rather of providing actual answers to pressing questions of justice.” He stressed the need for a strong social democracy that confidently upholds it’s values, adding, “The extremely worrying development of the SPD…also obliges us Jusos to question ourselves critically.”
