Schwesig pushes bold tax reforms to slash household costs in Germany

A fierce tax fairness battle erupts as Schwesig takes on the CSU. Her plan could redefine Germany's economic future—but will it ease the squeeze on families?

, and Administrator

2026 April 13 . 4:07 AM

1 min read

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Schwesig pushes bold tax reforms to slash household costs in Germany

"I consider a VAT increase to be poison, and I flatly reject it," Manuela Schwesig told broadcasters RTL and ntv. She argued that everyday essentials have already become too expensive, with many workers struggling under soaring rents, high food prices, and record fuel costs. "Prices shouldn't be rising—they need to fall urgently, especially for fuel."

Schwesig called for lowering income tax on earnings up to €3,000 and raising the top tax rate—but only for higher earners. "This way, the truly wealthy and top earners will contribute their fair share." She criticized CSU leader Markus Söder for rejecting a higher top tax rate, saying: "Those—including Markus Söder—who have spent weeks and months demanding reforms shouldn't immediately dismiss every proposal out of hand." Above all, she stressed, any tax reform must be fair.