The traffic light coalition has already had to fear decisions from Karlsruhe several times. Now Germany’s highest court is dealing with the solidarity tax – and there could be more trouble.
The Federal Constitutional Court will deal with the solidarity surcharge in an oral hearing on November 12. This was announced by the court in Karlsruhe. The Second Senate will hear a corresponding constitutional complaint against the solidarity surcharge introduced in 1995, which was intended to finance the costs of reunification. A verdict is usually not made until a few months later.
According to the complainants, the continued collection of the solidarity surcharge since the expiration of the so-called Solidarity Pact II in December 2019 is unconstitutional. They also criticize the fact that recipients of different incomes are treated unequally by the law on the return of the solidarity surcharge. With the law, the then grand coalition decided in 2019 that only higher earners – the top ten percent of incomes – would have to pay the surcharge. The remaining ninety percent of taxpayers are to be exempt.
The decision of the Karlsruhe judges could have major implications for the federal budget. The federal government has earmarked solidarity surcharge revenue of 12.75 billion euros for the coming year. If the Constitutional Court overturns the surcharge, it would tear a hole in the budget for 2025. But it could get even worse: the judges could decide that the state would have to pay back revenue from the solidarity surcharge from previous years. That would be around 65 billion euros since 2020.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
