Economist: Heirs of companies should pay higher taxes - Economist: Heirs of companies should pay higher taxes
Monika Schnitzer, chair of Germany’s Council of Economic Experts, has called for stricter inheritance tax rules on family businesses. She believes the current system unfairly favours business assets over private wealth. A key ruling from the Federal Constitutional Court is expected next year on this issue.
Schnitzer argues that private households face much higher taxes on financial assets than heirs to family companies. This imbalance creates an unjust advantage for business inheritances. She points out that wealthy heirs often receive not just companies but also luxury items like paintings, vintage cars, or private jets.
The economist does not claim that inheritance tax rates are too low overall. Instead, she highlights that different asset types are taxed unevenly. Schnitzer expects the court to overturn the existing rules in 2025, forcing a reform of the system.
If the court rules as Schnitzer predicts, inheritance tax laws will need to change. The decision could lead to fairer taxation between business and private assets. This would mark a significant shift in how large inheritances are handled in Germany.
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