Status: 12/13/2022 4:59 p.m
The traffic light faction leaders have apparently agreed on a common approach to the transfer of real estate assets. Now the Federal Council still has to agree to the increase in the allowances – which could become problematic.
A solution seems to be emerging in the conflict over higher allowances for inheritance tax: representatives of the traffic light groups apparently agreed to support a corresponding legislative initiative by the federal states in the Bundestag.
Federal Finance Minister Christian Lindner sees a breakthrough: “There has been an agreement between the coalition factions in the Bundestag, which I very much welcome,” he said. This provides that a legislative initiative by the Bundesrat for higher tax allowances would be supported by the traffic light groups in the Bundestag.
However, such an initiative on the part of the federal states has not yet existed, as Lindner also conceded. There are only advances from Bavaria, for example, for a reform. However, Lindner expressed the expectation that the understanding in the coalition could also trigger movement in the federal states.
Karlsruhe judgment required a reaction
The background is that due to a constitutional court ruling, the valuation of real estate is being adjusted. As a result, their value to be taken into account for tax purposes may increase significantly, which means that a higher amount would have to be taxed depending on the value. There is currently an exemption of EUR 500,000 for inheritance tax for spouses and EUR 400,000 for children. In addition, no tax is due for them if they use the property themselves. Otherwise, different tax rates apply depending on the scope of the inheritance and the family relationship.
Lindner therefore considers an increase of 25 percent to be appropriate, but sees the Federal Council on the train – because the inheritance tax goes completely to the states. “With the inheritance tax, the ball is now on the penalty spot – now the federal states only have to decide whether they want to score the goal or not,” said the Federal Minister of Finance.
Bavaria calls for regionalization
His Bavarian counterpart Albert Füracker (CSU), on the other hand, also sees the federal government as having a duty: “To throw the issue down to the states is simply not credible and borders on refusal to work.” However, Bavaria is isolated among the 16 federal states because, in addition to raising tax allowances, it is also demanding a regionalization of inheritance tax. The Free State argues with the higher property prices in the south of the republic, but the other states are opposed to the project.
Against this background, Lindner also advises separating the question of regionalization from the amount of the allowances in the planned Federal Council initiative. In the case of the latter, the hurdle for a common position of the federal states is certainly lower.
Criticism from the Greens and the Left Party
The traffic light coalition had long fought for higher tax allowances. “We Greens think this is the wrong signal,” said Green Party leader Katharina Dröge, but still acknowledged the internally found agreement: “If there is a majority in the Bundesrat for reforming the inheritance tax, we will not oppose it.”
This attitude met with criticism from the Left Party. Her spokesman for financial policy, Christian Görke, accused the SPD and the Greens of having caved in to Lindner’s FDP. In the case of inheritance tax, it is more necessary to abolish privileges, said Görke. “Because the super-rich all too often pay a lower tax rate on their inheritance than relatively small inheritances.”