Eastern Commissioner calls for financial compensation for inheritance tax between East and West Germany

In the debate about unequal distribution of wealth in Germany, the Federal Government's Eastern Commissioner, Elisabeth Kaiser, is calling for financial equalization between federal states with high and low inheritance tax revenues.

In a guest article on the occasion of the report on the status of German unity, the SPD politician writes in the “Rheinische Post” (Wednesday): “The average net total assets per household in 2023 were 125,500 euros in East Germany and 257,100 euros in West Germany. In terms of real estate assets, it was 97,800 euros compared to 214,500 euros.

That says nothing about whether people in the East want to take less precautions or dare less, said Kaiser, who is presenting her report on the status of German unity to the Federal Cabinet this Wednesday. “Different economic and property systems and the upheavals after 1990 continue to have an impact today,” writes the Eastern Commissioner.

“If you inherit little, you shouldn’t lose twice.”

“That’s why we also have to talk about inheritance tax. I think we should review exceptions and privileges for very large transfers of assets and take the federal mechanism into account," writes Kaiser in the guest article. “If fairer taxation of large inheritances creates additional revenue, it is not just those countries where inheritance tax revenue is particularly high that should benefit.”

Countries would finance schools, universities and infrastructure and create conditions for economic development. “Anyone who inherits little must not lose twice: in terms of private assets and in terms of the public opportunities of their country,” says Kaiser.