Germany’s Taxpayer Association President warns against rushed tax reforms, citing record state revenues and potential economic harm.

Reiner Holznagel, President of Germany’s Taxpayer Association, has called on the government to halt its current tax reform plans. Speaking on a podcast, Holznagel criticized the ongoing debates between the SPD and CDU/CSU, stating that the proposed reforms could do more harm than good. He emphasized that the state is collecting record tax revenues, nearly one trillion euros this year, and questioned the need for additional burdens on taxpayers.

Holznagel highlighted that over 50% of a single, childless worker’s income is already consumed by taxes and social contributions. He also criticized the government’s spending priorities, pointing out over 40 billion euros in subsidies for programs like heat pumps and electric mobility. Holznagel warned against ‘bad compromises’ in tax reform, suggesting that poorly designed measures could exacerbate economic challenges and fuel a recession.