German Coalition Agrees on Higher 'Rich Tax' for Top Earners

The coalition committee of CDU, CSU, and SPD has agreed on an income tax reform partially financed by a higher 'rich tax'. Despite its name, the tax targets not the wealthiest but those with taxable incomes starting at €250,000, taxed at 45%, and €280,000 at 47%. The reform aims to offset tax relief elsewhere. The details, buried in a three-line passage of the committee's outcome paper, reveal that the tax increase applies to a narrower band than the term 'rich tax' suggests. The article raises questions about who actually pays and whether the measure truly affects the super-rich.