Elisabeth Kaiser calls for inheritance tax reform to bridge East-West wealth gap

inheritance tax wealth inequality East Germany federal equalization social mobility

Elisabeth Kaiser, Germany’s Federal Commissioner for East Germany, is calling for structural reforms to address the persistent wealth gap between eastern and western states. In her annual report on the state of German unity, Kaiser proposed a financial equalization mechanism using inheritance tax revenues to support eastern states. She argued that if more equitable taxation of large estates generates additional revenue, these funds should not only benefit states with high inheritance tax yields but also be redistributed to support infrastructure, education, and economic development in the east.

Statistical data highlights the disparity: in 2023, the average net household wealth in East Germany was €125,500, compared to €257,100 in the West. Furthermore, 95 percent of the total value of taxable inheritance and gifts in 2025 was concentrated in western states, despite the east representing 19 percent of the population. Kaiser also advocated for a “basic inheritance” (Grunderbe) to provide young people with starting capital regardless of their family background.

Beyond wealth, Kaiser noted that East Germans remain underrepresented in leadership roles. While the share of East Germans in senior positions within federal agencies rose to 16.3 percent in 2022, they remain significantly underrepresented in top-tier leadership and judicial roles, such as presiding judges at federal courts.

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Elisabeth Kaiser · Federal Statistical Office · Germany · SPD

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[● 2 SOURCES] Elisabeth Kaiser proposes a financial equalization mechanism between federal states regarding inheritance tax revenue. berliner-abendblatt.de · www.zeit.de
[● 2 SOURCES] The average net total wealth per household in West Germany was 257,100 euros in 2023. berliner-abendblatt.de · www.zeit.de
[○ 1 SOURCE] Eastern German states accounted for only 5 percent of the total value of taxable inheritance and gift transfers in 2025.
[○ 1 SOURCE] In 2025, 95 percent of the total value of taxable inheritance and gift transfers occurred in western German states.
[● 2 SOURCES] The average net total wealth per household in East Germany was 125,500 euros in 2023. berliner-abendblatt.de · www.zeit.de
[○ 1 SOURCE] Elisabeth Kaiser suggested implementing a basic inheritance to provide young people with independent starting capital.