Söder open to changes in wealth tax and sugar tax

CSU leader Markus Söder signaled openness to adjusting the wealth tax in the ARD show «Arena». He views it as part of a comprehensive income tax reform. He did not categorically rule out a sugar tax if it serves health promotion.

Bavarian Minister President and CSU leader Markus Söder expressed openness to changes in the wealth tax during the ARD live show «Arena». «I am open to changing something about the wealth tax, because these are people who have over 300,000 euros,» he said. Previously, he had opposed any tax increases, but now sees it as part of overall relief.

Söder specified that this would be part of a major income tax reform. He cited examples such as adjusting the top tax rate for the middle class without an increase, relief for other groups, abolition of the electricity tax, and major tax simplification.

On a sugar tax for drinks like lemonades, he voiced reservations if it only plugs budget holes. «If such a tax, like the tobacco tax, could finance health and thus improve health itself and be moderate: we'll see,» he said.

In the pension debate, Söder expects longer working hours due to demographic changes. He stressed that the pension as basic security must absolutely be retained and expressed skepticism about including civil servants in the pension system. Fewer early retirements are conceivable, depending on job performance.

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Politicians Manuela Schwesig and Markus Söder advocating for tax reform in the German parliament following the rejection of a relief premium.
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Politicians call for tax reform after Bundesrat rejects relief premium

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After the Bundesrat blocked the planned tax-free relief premium of up to 1,000 euros, leading politicians are urging a comprehensive income tax reform instead. Manuela Schwesig (SPD) and Markus Söder (CSU) described the premium as failed.

CDU parliamentary group leader Jens Spahn has proposed that the SPD jointly develop a draft for income tax reform. The aim is to relieve small and medium incomes without public disputes.

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As the April 29 cabinet decision approaches, Health Minister Nina Warken and Finance Minister Lars Klingbeil signal openness to adjustments in the statutory health insurance savings package, originally based on the Finance Commission's 66 proposals. Following the recent draft release and coalition disputes, associations and opposition intensify criticisms.

Finance market minister Niklas Wykman warns against the opposition's proposal for a new bank tax. According to him the tax could lead to higher mortgage costs for Swedish households.

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Sweden Democrats present proposals for an election platform with promises of cold beer at Systembolaget, lower food VAT and abolished electricity tax.

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Sepp Müller, deputy leader of the Union parliamentary group, deems comprehensive subsidies against high fuel prices unrealistic. Eastern German CDU state premiers demand suspension of the CO₂ tax. Care associations warn of impacts on rural patient care.

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