Citizens with this income finance half the state

Federal Ministry of Finance in Berlin

The top tax rate always causes major political discussions.

(Photo: IMAGO/Jürgen Ritter)

Berlin Calls for a higher top tax rate are increasing: After CDU leader Friedrich Merz appeared open to such a step, experts from the Ifo Institute have now also suggested an increase. The condition for Merz and the economists: There should be tax cuts elsewhere at the same time, so that the bottom line is relief.

Merz wants to flatten the so-called middle class belly. This refers to the particularly strong increase in tax relief for middle incomes. In addition, the top tax rate should only apply to higher incomes. The Ifo economists propose the complete abolition of the solidarity surcharge. Currently only the ten percent with the highest incomes have to pay at least part of it.

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