# German political proposals for income tax reform

> Live situation record from CLSTR: https://clstr.news/situations/german-political-proposals-for-income-tax-reform
> Updated: 2026-08-16T06:10:04.000Z. Sources: 8. Developments: 2.

German political parties have introduced distinct proposals for income tax reform. The CDU, through General Secretary Carsten Linnemann, proposed raising the top income tax threshold from approximately 69,879 euros to over 80,000 euros. Linnemann also expressed interest in discussing reforms with the SPD regarding health, pensions, and reducing social security contributions for lower-income earners.

Concurrently, the FDP has advocated for automatic tax adjustments to combat ‘cold progression,’ a phenomenon where inflation-driven wage increases push taxpayers into higher brackets without increasing real purchasing power. FDP General Secretary Martin Hagen described the current system as a ‘growth brake.’ The FDP’s proposal seeks to legally link tax brackets and allowances to inflation rates, supported by a survey indicating that 62 percent of citizens view such a mechanism positively.

## Claims

- 62 percent of respondents view the proposal to automatically reduce cold progression positively. (corroborated by 3 sources)
- 18 percent of respondents view the proposal negatively. (corroborated by 3 sources)
- The FDP proposes legally anchoring tax brackets and allowances to inflation to combat cold progression. (corroborated by 3 sources)
- The FDP has proposed a four-stage tax tariff with rates of 15, 25, 35, and 42 percent. (corroborated by 2 sources)

## Timeline

### 2026-08-16: FDP proposes automatic tax adjustments to combat cold progression

A Civey survey shows 62% of Germans support automatically adjusting tax brackets to inflation to combat 'cold progression,' a proposal championed by the FDP to prevent rising tax burdens during inflation.

5 sources. https://clstr.news/cluster/fdp-proposes-automatic-tax-adjustments-to-combat-cold-progression

### 2026-08-15: CDU proposes raising Germany's top income tax threshold

CDU General Secretary Carsten Linnemann proposes raising the 42 percent top income tax threshold to 80,000 euros to increase net pay for high earners.

3 sources. https://clstr.news/cluster/cdu-proposes-raising-germanys-top-income-tax-threshold

---
Cite as: German political proposals for income tax reform. CLSTR, https://clstr.news/situations/german-political-proposals-for-income-tax-reform