Union Politicians Propose Tax Cuts Funded by Reduced Subsidies
Daily Monitor
April 22, 2026
Union Politicians Propose Tax Cuts Funded by Reduced Subsidies
German finance politicians Bury and Dorn have proposed a tax reform plan aimed at reducing the burden on small and medium incomes while eliminating the solidarity surcharge.
The proposal includes raising the wealthy tax rate to 47.5% and lowering the income threshold for this category. Expected tax revenue losses are estimated between €25 billion and €30 billion, which would be offset by cuts in subsidies and savings within federal administration. Ongoing negotiations between the Union and SPD aim to implement the reform by January 1, 2027.
For journalistic integrity, this report was summarized from: deutschlandfunk.de