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SPD Unveils Push to Raise Inheritance Taxes on Super-Heirs, Setting Up Coalition Fight

A party draft casts higher levies on extreme estates as a fairness measure, with details due next week as a constitutional ruling on business transfers is expected this year.

Overview

  • SPD leaders say their draft will close loopholes that let very wealthy heirs minimize taxes while keeping primary residences tax-free and safeguarding viable company successions.
  • Fraktionschef Matthias Miersch confirmed a legislative concept is coming soon and stressed the plan targets high multimillion bequests, not ordinary inheritances.
  • The CSU rejected the initiative as “leistungsfeindlich,” and the Union is pressing instead to bring forward corporate tax cuts originally slated to start in 2028.
  • Business groups including the VDA and the Stiftung Familienunternehmen warn that higher inheritance taxes on firm transfers could hurt investment, jobs and family companies.
  • The SPD links the inheritance-tax overhaul to relief for small and middle incomes, arguing record transfer volumes and unequal treatment of large fortunes justify reform.