(de-news.net) – Reiner Haseloff (CDU), Saxony-Anhalt’s Minister-President, advocates for the continuation of the solidarity surcharge, emphasizing its necessity in financing the welfare state. He argues that, rather than introducing new taxes, the surcharge should be extended pragmatically, particularly given the challenging economic climate. This follows the Federal Constitutional Court’s ruling on the surcharge.

Meanwhile, economist Werding proposed modifications. He acknowledged the constitutionality of the surcharge but criticized its outdated designation and special status. Werding suggested an integration into the income tax, raising the top tax rate to approximately 47.5%. Werding, while deeming this solution politically feasible, recommended reducing corporate taxes, which, including the surcharge, exceed the OECD average.

Initially established to address costs for the German reunification, the surcharge has, since 2021, been levied on high earners and corporations. The CDU had pledged its abolition in their election program, citing its obsolescence nearly 35 years post-reunification and its burden on businesses and professionals. The Federal Constitutional Court recently dismissed a complaint by FDP politicians, affirming the surcharge’s alignment with the federal government’s financial needs harking back to reunification. The court noted that the necessity for the surcharge persists. Its future is a topic in coalition negotiations on the federal level between the CDU and SPD.