Overview
- Die Linke proposes reintroducing a wealth tax with a €1 million personal allowance and a €5 million business-assets allowance, with rates starting at 1%, rising to 5% at €50 million and 12% from €1 billion.
- DIW estimates a maximum of €147 billion in annual receipts under the plan but says roughly €100 billion is more realistic once behavioral responses reduce the tax base.
- The institute highlights extreme concentration of wealth and finds the richest 0.1% would contribute about 92% of receipts, with billionaires paying roughly one third of the total.
- DIW cautions about short- and medium-term risks for investment, innovation and Germany’s attractiveness for business, and recommends gradual, internationally coordinated implementation to address constitutional and cross‑border challenges.
- Employer groups and CDU figures warn of capital flight and harm to small and mid-sized firms, while Die Linke’s Heidi Reichinnek rejects the capital-flight claim and points to higher allowances for business assets and improved feasibility of annual valuations.