Economist: Heirs of companies should pay higher taxes - Economist: Heirs of companies should pay higher taxes
Monika Schnitzer, head of Germany’s Council of Economic Experts, has urged reforms to inheritance tax rules. She believes the current system unfairly favours heirs of family businesses. A key ruling from the Federal Constitutional Court is expected next year on the issue.
Schnitzer argues that inheritance tax rates are not too low but treats different assets inconsistently. While business assets often receive preferential treatment, other high-value items—like art, luxury cars, or private jets—are taxed differently. She insists this imbalance undermines tax fairness.
The economist has called for stricter taxation on heirs inheriting family companies. Her stance comes ahead of an anticipated court decision in 2025, which she expects will declare the existing rules unconstitutional. Schnitzer frames the change as necessary for greater equity in the tax system.
No direct link exists between her proposals and recent pension or tax reforms. Earlier reports about Constitutional Court nominations, such as Carmen Wegge’s failed appointment, also remain unrelated to the inheritance tax debate.
The upcoming court ruling could reshape how inherited wealth is taxed in Germany. Schnitzer’s push for reform focuses on closing loopholes for high-value non-business assets. The decision will determine whether stricter rules take effect next year.
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