Union state faction leaders call for abandoning income tax reform and cutting taxes
The CDU and CSU state faction chiefs presented a six-point plan demanding lower social contributions, a reduced electricity tax and a halt to the planned income-tax reform.
In response to recent voting losses, the CDU and CSU parliamentary group leaders from the German states convened in Berlin and released a six-point agenda. The plan calls for a tangible reduction in social insurance contributions and proposes financing non-insurance services through tax revenue. It also urges the government to cut the electricity tax to the European minimum level, reassess the care reform through a "justice and practice" review, and organise a care summit involving all providers.
Additionally, the proposal seeks to change the benefit status of Ukrainian refugees to the asylum-seeker scheme, with the costs fully borne by the federal government, and to relieve municipalities from social-cost burdens. The leaders state that any conflict with existing coalition accords should trigger fresh talks with the SPD, emphasizing swift implementation of the measures.
Why it matters
The proposal signals a major shift in the Union's policy stance, potentially reshaping Germany's tax and welfare system.
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