CDU Leader Suggests Delaying German Tax Reform to 2027

A prominent figure within Germany's opposition, Sebastian Lechner, has proposed postponing the government's planned tax reform until next year, arguing that the current focus is misplaced. Lechner, who leads the CDU parliamentary group in Lower Saxony and was recently elected chairman of the Union's parliamentary group leaders' conference, believes more time is needed to address the complexities of the reform.

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In my view, we could postpone the tax reform to next year. We need more time for it.

"In my view, we could postpone the tax reform to next year. We need more time for it," Lechner told the 'Hannoversche Allgemeine Zeitung'. He highlighted the difficulties in securing the necessary counter-financing and compensating the federal states for the reform's impact. Lechner suggested that the government should instead prioritize measures that offer quicker relief to citizens.

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Before we get bogged down there, we should rather invest our energy in a quick solution elsewhere.

Lechner advocated for a more direct approach to easing financial burdens, specifically by reducing social security contributions. He proposed that the federal government should cover the health insurance costs for recipients of the citizen's allowance ('Bürgergeld') using tax revenue, rather than having these costs borne by members of the statutory health insurance system through their contributions. "This is something nobody understands, and it must stop," he stated.

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It would be simpler and more effective to relieve people through social security contributions.

The timing of Lechner's remarks is significant, as leaders from the governing coalition parties are set to meet for a coalition committee discussion. The agenda includes tax relief for low and middle-income earners, labor market reforms, and issues related to pensions, health, and care. Lechner's suggestion offers a potential alternative focus for the government, emphasizing immediate relief over a potentially complex and time-consuming tax overhaul.

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We can quickly relieve citizens by having the federal government pay the health insurance costs for citizen's allowance recipients in the future.