Monika Schnitzer, chair of the German Council of Economic Experts, is advocating for significant changes to the inheritance tax, particularly in relation to business inheritances. She argues that the current system, which often exempts company heirs from taxation if they maintain employment levels, is economically unjustifiable. Schnitzer believes that including business inheritances within the scope of the inheritance tax would be a fair adjustment, promoting economic efficiency.
Schnitzer dismisses concerns regarding the payment of these taxes. She suggests that heirs could use other assets or leverage financial markets to settle their tax obligations. Additionally, she notes that there is an option to defer tax payments, making them manageable. Empirical evidence from other countries, according to Schnitzer, indicates no increase in the risk of insolvency for businesses as a result of inheritance taxes.
While Schnitzer supports expanding the inheritance tax, she opposes the idea of a billionaire tax, which some political figures, including the Left Party and Green candidate Robert Habeck, have proposed. She argues that such a tax would entail significant administrative burdens, consuming a substantial portion of the revenue it generates. Instead, she advocates focusing on enhancing the inheritance tax to ensure equitable wealth distribution without excessive bureaucratic overhead.
Schnitzer's proposals extend beyond taxation. She calls for the abolition of retirement benefits at age 63 and suggests raising the retirement age to address financial sustainability concerns. She warns that pension contributions could exceed 26%, urging a reduction in overall social contributions to maintain economic stability.
