Campaign Launched to Abolish Inheritance Tax Privileges for German Billionaires
A coalition of German organisations, including Netzwerk Steuergerechtigkeit, Bürgerbewegung Finanzwende, and Taxmenow, have launched a campaign titled 'Ehrensache Erbschaftsteuer: Keine Ausnahmen für Milliardäre'. They demand the abolition of privileges for billionaires in inheritance tax.
In Germany, inheritances and gifts above exemptions are taxed, with revenues going to the states. However, several pending proceedings before the BVerfG could lead to changes in this system. In 2024, 45 wealthy individuals inherited nearly €12 billion, but on average, they paid only 1.5% in taxes.
The issue lies in generous exemptions: €500,000 for married couples and €400,000 per child. As a result, only a fraction of wealth transfers are recorded. Taxable acquisitions in inheritances and gifts increased from €58.3 billion in 2022 to €64.7 billion in 2023, indicating a growing concern.
The Federal Constitutional Court has criticized the privileging of business wealth. Official figures can be misleading for large fortunes due to this exemption. Politicians are discussing higher taxation of the rich and reviewing the exemption. In 2023 alone, the state waived revenues of €3.4 billion due to this exemption. Estimates suggest around €400 billion is inherited annually in Germany.
The campaign 'Ehrensache Erbschaftsteuer: Keine Ausnahmen für Milliardäre' challenges the current inheritance tax system. With increasing wealth transfers and critical reviews of existing exemptions, politicians are urged to reconsider the taxation of large fortunes and the business wealth exemption.
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