The Left Party of Germany wants to reintroduce a wealth tax. According to estimates, the measure could generate more than 147 billion euros per year.
According to the Tagesschau newspaper, the Left Party has long been demanding the reintroduction of a wealth tax that was suspended in 1997. Now, they have commissioned the German Institute for Economic Research (DIW) to calculate how much money the proposal would bring to the state budget. According to estimates, this amount would amount to 147.4 billion euros per year. According to the Left Party’s calculations, this funding would theoretically allow Bavaria to finance the construction of 470 000 housing units that it lacks, and Thuringia to make kindergartens and daycare centers free.
The Left Party’s proposal includes a tax-free threshold of one million euros for personal assets and five million euros for corporate assets. Individuals would be exempt from wealth tax for assets up to this amount. A tax rate of one percent would apply to assets exceeding this amount. This rate will increase to five percent for assets exceeding 50 million euros and to twelve percent for assets exceeding one billion euros.
