Germany's Bundestag debates tax reform proposals

The Left Party (Die Linke) has presented a tax‑relief plan that would raise the tax‑free basic allowance from about €12,348 to €16,800, eliminate the first income‑tax bracket and exempt all earners with a monthly income up to €7,000. To finance the measure, the party proposes a higher top marginal rate of 53 % on taxable incomes above €85,000, a 75 % “millionaire tax” on incomes over €1 million and equal taxation of capital income.

The Green Party offers a more modest reform, suggesting a €500 increase to the basic allowance, a rise of the employee‑deduction to €1,500 and a two‑percentage‑point cut to health‑insurance contributions. The Greens stress fiscal neutrality, while the governing Union and SPD express concerns about budgetary impact. Finance Minister Christian Klingbeil says any reform should be largely revenue‑neutral, and the opposition argues that only a comprehensive redistribution can address growing inequality.