Overview
- Der Spiegel reported on Monday that Finance Minister Lars Klingbeil presented two internal income‑tax variants costing about €10 billion and €20 billion to the SPD–Union coalition.
- Both variants were said to push the 42% top-rate threshold to a higher income level while offsetting revenue loss by raising the 45% top rate and, in the larger package, increasing inheritance tax.
- The Bundesfinanzministerium issued a same‑day denial, calling the Spiegel account incorrect and vague and stressing the official goal is to relieve people with small and middle incomes.
- No concrete measures, figures, or agreed text have been published and coalition negotiations on the reform remain confidential, leaving the media report unconfirmed.
- Current rules put the 42% rate at about €70,000 and the 45% rate at roughly €280,000, so any change would shift tax burdens across income groups and affect the federal budget and coalition politics.