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Commissioner for Eastern Germany Calls for Equal Treatment in Inheritance Tax

Commissioner for Eastern Germany Calls for Equal Treatment in Inheritance Tax
Elisabeth Kaiser, Commissioner for Eastern Germany, proposes financial compensation among the states regarding inheritance tax (file photo) / Photo: Lilli Förter/dpa
From: Sachsen News
There are significant differences in wealth between the east and the west—and thus in inheritance tax revenue. Kaiser, the Commissioner for Eastern Germany, is calling for poorer federal states not to be disadvantaged.

In the debate over unequal wealth distribution in Germany, the Federal Government Commissioner for Eastern Germany, Elisabeth Kaiser, is calling for financial equalization between federal states with high and low inheritance tax revenues. 

In an op-ed published on the occasion of the report on the state of German unity, the SPD politician writes in the *Rheinische Post* (Wednesday): “In 2023, the average total net wealth per household was 125,500 euros in eastern Germany and 257,100 euros in western Germany. For real estate assets, the figures were 97,800 euros versus 214,500 euros.”

This says nothing about whether people in the East are less inclined to save for the future or less willing to take risks, according to Kaiser, who will present her report on the state of German unity to the Federal Cabinet this Wednesday. “Different economic and property systems, as well as the upheavals following 1990, continue to have an impact to this day,” writes the Commissioner for Eastern Germany.

“Those who inherit little should not lose out twice”

“That is why we must also discuss the inheritance tax. I believe we should review exemptions and privileges for very large asset transfers while taking the federal system into account,” Kaiser writes in her op-ed. “If fairer taxation of large inheritances generates additional revenue, it shouldn’t benefit only those states where inheritance tax revenue is particularly high.”

States would finance schools, universities, and infrastructure and create conditions for economic development. “Those who inherit little should not lose out twice: in terms of private wealth and in terms of their state’s public opportunities,” says Kaiser.

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