Merz accuses the SPD of uncertainty over inheritance tax

“That is why I would like to ask our coalition partner not to create additional uncertainty among the population and especially among medium-sized companies through tax policy proposals these days when it comes to the question of the succession of the next generations in these companies,” said Merz.

The federal government should wait for a decision from the Federal Constitutional Court on inheritance tax, which is expected in the course of 2026. “I don’t want tax burdens to make it even more difficult for families to pass on businesses,” said Merz. “If the Federal Constitutional Theater does not allow us to continue as it is today, then we should do everything we can to enable succession in companies in such a way that it is also made easier from a tax perspective and not made more difficult from a tax perspective.”

The SPD wants to tax rich heirs more heavily. The concept provides for a new allowance of five million euros for the inheritance of companies. From then on, taxes will be due, with deferral options of up to 20 years. The SPD wants to abolish current exemption rules.

The plans had sparked widespread criticism in the business community. The family business association criticized the SPD for selling the new business allowance of five million euros as protection for small and medium-sized businesses. “In reality, this amount is far from enough to provide tax protection for successors in typical medium-sized companies.”