Taxpayers' Association calls Klingbeil's tax reform plans a 'joke'

German Finance Minister Lars Klingbeil's draft proposal for an income tax reform is drawing increasing criticism, with the German Taxpayers' Federation labeling the plans a "joke" and a "provocation." The association's president, Reiner Holznagel, told the Augsburger Allgemeine that the draft reads like a "poison list," asserting that it contains more burdens than relief for citizens.

This criticism follows earlier objections from politicians, including Daniel Peters, the CDU state chairman in Mecklenburg-Vorpommern. Peters had urged for revisions, accusing Klingbeil of breaking his word because the reform plans, in his view, do not offer "real relief." He specifically lamented that "not even a third" of the "already meager ten billion euro tax relief" would remain.

Alexander Hoffmann, the leader of the CSU state group, also criticized the proposal, highlighting the potential elimination of tax benefits for associations. The debate surrounding the reform has surprised observers, as the official draft legislation has not yet been released. However, DIE ZEIT has reviewed a preliminary version.

The draft is structured to take effect in two stages, in 2027 and 2028. Its primary aims are to provide relief to citizens and families, impose higher taxes on high incomes, and eliminate or reduce several tax benefits. The reviewed draft does not appear to support the Union's claim that a promised ten-billion-euro relief package has been significantly reduced.