A leading German conservative politician has called for a shift in the threshold for the top rate of tax, with his proposal particularly benefiting higher incomes.
“I advocate that the top tax rate should not apply at an annual gross income of €68,000 [$80,723] but only at €80,000. This way, we flatten the middle-class bulge and provide relief,” Christian Democratic Union (CDU) General Secretary Carsten Linnemann told Sunday’s edition of the Bild newspaper.
Linnemann, whose party forms a bloc with the Bavaria-only Christian Social Union (CSU), admitted that for lower incomes, relief in incidental wage costs would be greater.
He said there needs to be a discussion between his bloc and the centre-left coalition partner the Social Democratic Party (SPD) about a reform package.
Regarding social contributions, Linnemann said that even keeping them at the current level could be considered a success.
“If I sit here now and say, I promise that the contributions will decrease or remain stable, that’s difficult … [in the long-term] we need to head back towards 40%, because at the moment we are heading towards 45%,” he said.
Linnemann firmly rejected SPD demands for new social levies on rental and capital income shortly before the CDU party conference, which begins on Friday in the south-western city of Stuttgart.
With regard to the reform of unemployment payments, currently known as the citizen’s income, Linnemann advocated for further tightening. “There are people who work five to 10 hours and top up with citizen’s income. This creates a system where social benefits are legally tapped.” This must stop, he said.
