German Minister Reiche: Tax increases are “poison” for the economy

German Economics Minister Katherina Reiche (CDU) firmly rejects the proposals to increase inheritance tax, which are being pushed forward by the coalition Social Democrats (SPD).

In an interview with the Bild newspaper, she expressed her conviction that any tax increase would hamper economic growth and be “poison” for the economy. She fears that higher taxes could cause companies to leave Germany, which would undermine the country's competitive position.

Reiche pointed in particular to the risks for family businesses, where higher inheritance taxes could lead to forced sales and make generational change more difficult.
Similar warnings were also expressed by the head of the Chancellery, Thorsten Frei, who believes that private assets are already sufficiently taxed and that a further burden would reduce investment in innovation and competitiveness.

Instead, the minister wants to vigorously support the economy by lowering income taxes, which she believes would lead to greater productivity and growth. She added that the social market economy works best when “the table grows” and resources increase rather than decrease.

(sie)