Tax Debate

Germany's Social Democrats demand higher income taxes on top earners

28.12.2025, 15:48

Germany's top earners should pay higher income taxes, the secretary general of the country's Social Democratic Party (SPD) said on Sunday.

Germany's top earners should pay higher income taxes, the secretary general of the country's Social Democratic Party (SPD) said on Sunday.

"A single person with an annual income of €280,000 ($330,000) can shoulder more responsibility in these times," Tim Klüssendorf told the web.de news portal.

The mark represents the threshold for the top rate of income tax in Germany, at 45%.

Klüssendorf said he also wants to ease the burden on the middle classes by raising the threshold for the second-highest level of tax, a 42% rate on incomes above €68,480.

The issue of tax hikes is complicated for Germany's governing coalition, made up of Chancellor Friedrich Merz's conservatives and the SPD.

Difficult negotiations are to come next year on as the government seeks to address a looming deficit in the budget.

The centre-right bloc - made up of Merz's Christian Democratic Union (CDU) and the Bavaria-only Christian Social Union (CSU) - has consistently opposed raising taxes, calling for deep cuts to welfare spending that could be difficult for the centre-left SPD to accept.

Nevertheless, Klüssendorf insisted that the coalition partners will be able to "achieve something."

The CDU/CSU "recognizes that the gap between rich and poor is putting pressure on our democracy and our society," Klüssendorf said.

The SPD veteran added that the parties promised in their coalition agreement to provide "tangible income tax relief for low and middle incomes by the middle of the legislative period."