(de-news.net) – Federal Finance Minister and SPD Chairman Lars Klingbeil has suggested that tax increases remain a plausible instrument for addressing the nation’s 30-billion-euro budget deficit. He emphasized the importance of a comprehensive fiscal strategy and conveyed that the SPD’s enduring commitment to progressive taxation—particularly targeting high-income earners and individuals with substantial wealth—continues to inform its policy orientation, notwithstanding the constraints inherent in coalition governance.

The CDU/CSU has expressed opposition to SPD proposals aimed at increasing the tax burden on top earners as a means of financing relief for low and middle-income groups. While both parties reaffirmed their mutual objective of easing the tax load on these segments, the Union maintained its preference for raising the threshold for the top tax rate. CDU/CSU parliamentary manager Steffen Bilger reportedly argued that equitable tax policy should reward diligence and responsibility, cautioning that tax hikes could adversely affect employment and the viability of small and medium-sized enterprises, particularly under current economic pressures.

SPD parliamentary manager Dirk Wiese had previously reiterated the necessity of reforming income tax to support workers in sectors such as manufacturing and shift-based industries. He proposed that increased taxation on exceptionally high incomes could serve as a viable counterbalance to the proposed relief measures. Wiese also pointed to the Union’s openness to negotiation on its own priorities as indicative of a constructive approach to coalition dialogue.

Meanwhile, criticism from the opposition, particularly the Greens, has intensified. The party accused the coalition of disproportionately benefiting the wealthiest percentile through initiatives referred to as “investment boosters,” while failing to honor commitments to reduce taxes for lower and middle-income earners. The Greens further contended that the coalition’s fiscal decisions—such as the refusal to lower energy taxes due to budgetary constraints—have undermined the broader public interest.

Chancellor Friedrich Merz recently placed prospective income tax reforms under financial scrutiny. He indicated that any reductions would be conditional upon the fiscal capacity of the federal budget.