(de-news.net) – Thorsten Frei (CDU), Head of the German Chancellor’s Office, has unequivocally rejected proposals—some originating within his own party—that seek to increase the tax burden on company transfers, amid renewed discourse on inheritance tax reform. He maintained that substantial private wealth was already subject to taxation and described the existing inheritance tax framework as highly complex. Frei cautioned that stricter regulations could compel business sales and prompt the relocation of jobs and expertise, particularly in regions such as the Black Forest, thereby jeopardizing generational continuity in family enterprises.
He characterized inheritance tax as a structural policy instrument, arguing that capital redirected to taxation would be unavailable for innovation and economic competitiveness. Frei attributed the failure of previous legislative initiatives before the Federal Constitutional Court in Karlsruhe to the uncertainty such reforms engender. He underscored the importance of business stability and advocated for asset formation as the principal means of addressing wealth inequality, linking this approach to the CDU’s endorsement of early retirement schemes.
The CDU/CSU parliamentary group similarly dismissed reform proposals advanced by SPD Secretary-General Tim Klüssendorf. CSU/CSU Deputy Chair Sepp Müller criticized the timing of the debate and accused the SPD of attempting to increase the financial burden on entrepreneurs, which he contended would impede economic recovery. Müller expressed greater confidence in private investors than in state-led redistribution, citing the philanthropic and professional contributions of SAP founder Hasso Plattner as more beneficial to society than bureaucratic mechanisms. The CSU aligned with this position. General Secretary Martin Huber opposed the notion of the state profiting from the lifetime achievements of parents and reiterated the party’s demand that federal states be granted authority to determine inheritance tax rates.
In contrast, Klüssendorf had proposed a comprehensive restructuring of the inheritance and gift tax regime. He advocated for a “lifetime exemption” model, under which individuals could inherit or receive gifts up to a specified threshold tax-free, with any excess amounts subject to full taxation. He criticized the current provision allowing parents to transfer 400,000 euros every ten years without incurring tax liabilities, arguing that this mechanism was exploited by the ultra-wealthy to facilitate substantial untaxed transfers. Klüssendorf described the system as inequitable and outdated, particularly in its reliance on bloodline relationships to determine exemptions, and called for individuals to be permitted to designate their closest relations independently.
He emphasized the need to safeguard small and medium-sized inheritances while targeting multimillion- and billion-euro estates. Klüssendorf contended that the existing system was unjust, given that over half of Germany’s population receives no inheritance. The SPD proposal, he asserted, aimed to generate a double-digit billion-euro increase in public revenue. Furthermore, he suggested linking inheritance tax relief for heirs of large rental properties to rent policy obligations, proposing tax reductions for those who commit to maintaining local market rents or limiting rent increases.
