CDU calls tax reform “unacceptable” – and threatens SPD with blockade

The CDU has threatened the SPD-led Federal Ministry of Finance with blocking the tax reform. The income tax reform “cannot be approved without a really practical model that enables partnerships to switch to taxation according to corporate tax,” said the deputy chairman of the Union parliamentary group, Mathias Middelberg (CDU), to the “Handelsblatt” according to information on Friday.

As part of their reform program, the Union and the SPD agreed on a tax reform that would increase the tax rate for the rich from 45 to 47 percent. At the same time, the coalition had already decided to gradually reduce corporate tax from 15 to ten percent.

The federal government will present an improvement to the option model by autumn 2026, according to a coalition resolution at the beginning of July. “Unfortunately, there is still no proposal for this,” criticized Middelberg. “Without a practical option model, in my opinion there can be no approval for the planned tax increase.”