CDU proposes raising Germany's top income tax threshold

Carsten Linnemann, General Secretary of the CDU, has proposed a tax reform aimed at increasing the net income of high earners. Currently, the top tax rate of 42 percent applies to incomes starting at approximately 69,879 euros. Linnemann suggests raising this threshold so that the top rate only applies to individuals earning over 80,000 euros.

Linnemann indicated a desire to discuss this reform package with the SPD, noting that discussions regarding health and pensions are expected in the coming months. Beyond income tax, he emphasized the importance of reducing social security contributions for lower-income earners, aiming to stabilize them toward the 40 percent mark to maintain system stability.