At its parliamentary retreat in Berlin, the Social Democratic Party (SPD) in the Bundestag announced plans to move ahead soon with reforms to inheritance tax and income tax, while also calling for residency rights for people who are working in Germany. According to a draft resolution prepared for the party’s annual kickoff meeting, which began on Thursday, the aim is to promote solidarity and reduce structural inequalities across the country. The document also states that “Germany’s economy needs immigration.”
The draft warns that the growing concentration of wealth is threatening social cohesion. As a result, the SPD plans to reform inheritance tax. It is described as “self-evident that grandma’s home can be inherited tax-free, but inheritance tax should apply to three villas.” At the same time, the party says inheritance tax must be designed in a way that allows businesses to continue operating smoothly and preserves jobs. With this position, the SPD is distancing itself in particular from the CSU.
The party is also planning changes to income tax, with the goal of easing the burden on low- and middle-income earners. “Work must enable a decent and dignified life,” the paper states. It adds that “it is only fair if those who earn very high incomes and own a great deal of wealth are taxed more heavily to finance these tax cuts.” The reform is being targeted for this year.
The resolution is titled “Together Is Our Strength.” The parliamentary group says it is convinced that the “challenges of our time” can only be overcome through unity rather than division.
Speaking ahead of the two-day retreat, SPD parliamentary group leader Matthias Miersch said that focusing on what unites people is currently “essential.” “We are experiencing that much of what we considered self-evident in foreign policy no longer applies,” he said. For that reason, the discussions would also focus on “forging global alliances.”
Other SPD initiatives aim to strengthen Germany as a business location. Alongside an AI push for small and medium-sized enterprises, including ideas such as a “state-funded AI voucher”, a major focus is on immigration. The shortage of skilled workers is already posing major challenges for many companies. “That is also why we want a right to stay for all people who work here or are in training and are well integrated,” Miersch said, adding that the economy is “urgently dependent” on this.
Asked about potential resistance within the governing coalition, Miersch said he was “confident” that there would ultimately be agreement that migration needs to be managed and that it offers “huge opportunities.” This would also require creating appropriate frameworks, as qualified immigration is necessary, including to stabilize the social security systems. “We have shortages everywhere.”
The draft resolution also highlights the importance of strengthening women’s rights. “Violence against women begins in everyday life,” the document states, “and far too often leads to death.” The SPD is therefore calling for new regulations and criminal offenses. “Femicide, the killing of women because of their gender, is also a particularly serious injustice that must be made visible and prosecuted consistently.”
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