CDU proposes 3% ministry budget cuts to fund sweeping tax relief

Carsten Linnemann, Secretary General of the CDU, has proposed that government ministries cut their budgets by 1% to 3%. He argues this could free up tens of billions to fund tax relief measures. The suggestion comes amid ongoing debates about fiscal policy and economic support. Linnemann estimated that a 3% reduction in ministry budgets would generate significant funds. He has also not ruled out increasing the top income tax rate from 45% to 47% or expanding the wealth tax. However, he stressed that any changes must not add financial pressure on small and medium-sized businesses or skilled trades.

The CDU/CSU alliance has repeatedly stated its opposition to additional costs for small tradespeople. Linnemann accused the SPD of pushing for aggressive redistribution, which he fears could harm businesses. SPD leader Bärbel Bas, in response, has called for annual tax relief of €500 for low- and middle-income earners.

Linnemann emphasised the need for compromise in the discussions. He insists that any tax relief must be offset and should not create extra burdens for businesses or taxpayers. The proposals highlight a divide in approaches to tax policy. Linnemann’s focus remains on protecting small businesses while exploring ways to fund relief. The debate continues over how to balance fiscal responsibility with economic support.