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SPD Inheritance-Tax Plan Meets Union Rebuff, Reaches Schleswig-Holstein Landtag

The proposal faces firm Union resistance despite the SPD advancing the debate at state level to build momentum for federal change.

Overview

  • The SPD outlines a lifetime personal exemption of €1 million, keeps self-occupied inherited homes tax-free, and applies progressive rates above the threshold.
  • For businesses, the concept proposes a €5 million corporate exemption and the option to stretch payments over up to 20 years to ease transfers.
  • CDU/CSU leaders label the plan “mausetot,” argue current law is assumed constitutional, and warn of higher burdens on business assets and risks for family firms.
  • SPD leaders defend the design as fairer, saying most heirs would pay less and that roughly 85% of companies would fall outside the tax under their model.
  • Beyond Berlin, the SPD has tabled a motion in Schleswig-Holstein’s Landtag urging the state government to advocate a federal reform, as a Constitutional Court ruling expected this year could reshape the framework.