Germany and Austria address wealth inequality, call for tax reforms

The German Economic Council's (SVR) 2025 report highlights that Germany, together with Austria, has the highest wealth disparity in the Euro area. The richest 10% of households own about 60% of total wealth, while the poorer half holds less than 2%. A large share of real‑estate (≈50%) and business assets (over 85%) is concentrated in the top decile, with significant East‑West gaps in Germany and markedly lower wealth among people with migration backgrounds. The SVR urges stronger wealth taxation and a reform of inheritance and gift taxes, noting that the current exemptions allow the richest to pay minimal rates.

An Austrian study commissioned by the Momentum Institute underscores the scale of billionaire fortunes, showing that saving a typical wage would require over a million years to match such wealth. Austria ranks near the bottom among OECD countries in wealth‑related tax receipts—only 1% of total tax revenue—due to the absence of inheritance and wealth taxes. The study recommends re‑introducing inheritance and gift taxes and introducing a targeted tax on the very largest fortunes, while protecting modest inheritances and primary residences.

Both reports argue that the concentration of wealth hampers economic efficiency, limits social mobility, and concentrates political influence, calling for fiscal measures to redistribute wealth more equitably.