The SPD wing wants to increase the top tax rate for top earners

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The conservative wing of the SPD parliamentary group wants to reform the top tax rate in two ways: it should take effect later for low and normal earners and be raised for top earners.

The Seeheimer Kreis proposes that the currently applicable top income tax rate of 42 percent be collected later for people with low and middle incomes: for singles with an annual gross income above 80,000 euros, for married people above 175,000 euros. This would relieve the burden on 95 percent of taxpayers. It would be more expensive for top earners and the top tax rate would be raised to 45 percent. The maximum tax rate, which is currently 45 percent and applies from just under 278,000 euros, will be adjusted to 48 percent.

“We are the party of the working center,” says the strategy paper entitled “Strengthening the working center,” which the star is present. Too many people are turning away from social democracy; in the past, issues were often not addressed out of “misunderstood consideration”, but they obviously moved people in Germany. “We recognize that many people currently have a disturbing feeling about federal politics,” it continues.

“Reorient the SPD’s political compass more towards the working middle”

Against this background, the Seeheimers are also calling for further increases in child benefit as well as relief in tax allowances, free lunch at schools and daycare centers nationwide for all children every day, an increase in the minimum wage to 15 euros, investments worth billions in the economy and citizens’ money that is “more accurate ” be. Citizenship payments to newly arriving Ukrainian refugees should also be examined in the future.

“With this strategy paper we want to make our contribution to making the SPD’s political compass noticeably more focused on the working middle of this country,” said Esra Limbacher star. The deputy spokesman for the economic working group and representative for small and medium-sized businesses of the SPD parliamentary group was responsible for writing the strategy paper together with Dirk Wiese, one of the deputy group leaders. Limbacher sums up the Seeheimers’ initiative with this formula: “Doing instead of complaining – that’s our way.”

The proposals are obviously intended to sharpen the SPD’s profile as a party for the working and middle classes. Around a year before the federal election, the Social Democrats have shrunk to 15 to 17 percent in the polls. In view of the tense budget situation, the SPD faction wing is increasing the pressure on the liberal coalition partner in particular. The FDP rejects a higher top tax rate and also insists on compliance with the current debt rules. SPD Chancellor Olaf Scholz is also required to provide financial aid for the stumbling economy.

The Seeheimers advocate a “fundamental” reform of the debt rules or, for example, the creation of a special fund worth billions for investments in the “modernization and future viability” of Germany as a business location. In order to be able to produce and invest competitively in all areas again and with planning security for companies and companies, the electricity costs for companies would have to be capped with an industrial electricity price. In addition, measures would have to be taken to ensure that the increasing network fees are no longer passed on to consumers. Most recently, we brought a reduced price for industrial electricity into play.

Putting citizens’ benefits for newly arriving Ukraine refugees under review

When it comes to citizens’ benefit, the Seeheimers are in favor of more obligations to cooperate, cuts in the event of refusal to work and consequences for undeclared work. In addition, the initiative of many federal states to review the citizen’s benefit payments to newly arriving Ukrainian refugees is supported. “What made sense at the beginning of Russia’s attack on Ukraine in order to be able to act quickly now appears to need to be reviewed to ensure equal treatment,” Limbacher told the star. At the same time, it is the clear mandate of the state and the economy to ensure faster integration into the labor market.

In addition, work should not be taxed more highly than non-work, the SPD wing writes in the paper. Therefore, the taxation of capital gains at 25 percent must end, while normal employees would have to pay a higher tax rate on their income for their wage work. The proposal is flanked by a “modern tax concept”, i.e. the update for the top tax rate. Economic politician Limbacher: “The SPD must gear its policy towards the many hard-working people in our country who ensure record employment in Germany.”