6 major injustices for taxpayers in Germany

Berlin Right at the beginning of the year, a tax dispute is brewing in the traffic light coalition. Finance Minister Christian Lindner (FDP) called for the solidarity contribution to be completely abolished. “The FDP has not stopped thinking in tax policy,” said Lindner. In the ears of his coalition partners SPD and Greens, that must have sounded like a threat.

The answer of the Social Democrats followed promptly. “The issues of distribution and justice are now taking center stage,” announced SPD leader Lars Klingbeil – and set up a commission to work on a new tax concept. In 2023, tax policy is likely to become one of the conflict issues for the coalition.

In fact, there are major injustices in the German tax system that lead to lower growth and fewer jobs. Ifo President Clemens Fuest speaks of “fairness gaps” that are evident, among other things, in income tax and inheritance tax or in who can still afford a house. The Handelsblatt names six control rights and analyzes what the state can do against them.