Berlin, February 9, 2025 – The Europe Today – As Germany approaches its parliamentary elections on February 23, the Left Party (die Linke) has introduced an ambitious tax reform plan aimed at reducing wealth inequality by significantly taxing billionaires.
The far-left party, currently struggling to meet the 5% threshold required to enter parliament, has proposed a five-point plan to halve the wealth of billionaires within a decade. Party co-chair Jan van Aken stated, “We believe there should not be any billionaires.”
The proposed plan is not focused on income taxation but instead targets accumulated wealth. The progressive tax structure includes:
- 1% annual tax on wealth exceeding €1 million
- 5% tax on fortunes above €50 million
- 12% tax on wealth above €1 billion
Additionally, a one-time levy is proposed for the wealthiest 0.7% of Germans:
- 10% tax for individuals with more than €2 million
- Up to 30% tax on higher sums
The Left Party also calls for higher inheritance taxes on large estates and increased income tax rates for high earners:
- 60% tax on salaries exceeding €250,000
- 75% tax on incomes above €1 million
Furthermore, capital gains tax would shift from the current flat 25% rate to a progressive system, ensuring higher taxation on larger profits.
Despite these proposals, the Left Party’s chances of implementing them remain unlikely, as major political factions traditionally avoid forming coalitions with the post-communist party. Nonetheless, the plan has ignited a debate on economic inequality and taxation in Germany ahead of the elections.
