(de-news.net) – In the context of ongoing deliberations concerning fiscal policy, Markus Söder, Minister-President of Bavaria and leader of the CSU, has expressed unequivocal opposition to any form of tax increases under the current administration. Representing his party’s stance, Söder reaffirmed that the CSU would not endorse additional taxation measures, referencing the coalition agreement as a binding framework for this position. Instead, he advocated for a comprehensive reduction in taxation and levies, with particular emphasis on income tax relief. His fiscal proposals further encompassed targeted expenditure reductions, notably in the domains of citizen income and subsidies for heat pump installations. Moreover, Söder underscored the necessity of enhancing the efficiency of the welfare state, voicing concern that the misuse of social benefits undermines societal perceptions of fairness and equity.

Conversely, Lars Klingbeil, Federal Finance Minister and chairman of the SPD, indicated that increased taxation for high-income earners and individuals with substantial wealth remains a conceivable policy option. This suggestion has encountered resistance from the Union parties. While acknowledging the imperative for reform within the social security system — including areas such as health insurance, pension schemes, and citizen income —Klingbeil cautioned against implementing excessively severe budgetary reductions. He emphasized the importance of preserving the structural integrity of the welfare state throughout the reform process. As part of his policy outlook, Klingbeil cited instances of undeclared employment among benefit recipients as issues requiring regulatory attention. Nonetheless, he dismissed the feasibility of abrupt and extensive cuts to social expenditures, instead advocating for a balanced and inclusive reform strategy that would necessitate broad societal engagement.