Monika Schnitzer, chair of Germany's Council of Economic Experts, advocates for stronger taxation of heirs to large family businesses. She argues this is necessary for tax justice, as private assets are taxed much higher than business property. Schnitzer anticipates the Federal Constitutional Court will overturn current rules soon.
Monika Schnitzer, economist and chair of the German Council of Economic Experts—commonly known as the Wirtschaftsweisen—has called for reforming inheritance tax in an interview with the Rheinische Post. She points to the unequal treatment of different asset types: “Private households' financial assets are taxed disproportionately higher than the operating assets of inherited businesses.”
Schnitzer notes that inheritances often extend beyond the company itself. “Alongside liquid accounts, there are also paintings, classic cars, or the private jet—especially in cases of very large estates.” The inheritance tax itself is not too low, but the varying taxation of asset types creates injustices.
The expert predicts that the Federal Constitutional Court will address this disparity next year. An ongoing case could overturn the current regulations, leading to fairer taxation. Schnitzer's stance highlights the ongoing debate on tax equity in Germany, where protecting family businesses clashes with equal treatment of all assets.
