Executive at Rossmann seeks increased taxation for elevated profits.
In favor of adjusting corporate taxation, Raoul Roßmann, CEO of the drugstore chain Rossmann, has voiced his approval. This expression of support comes amidst the formation of the new coalition between the Union and the SPD in Germany.
Roßmann, the 39-year-old son of the company's founder, Dirk Roßmann, proclaimed his endorsement for progressive corporate taxes, where the tax rate increases as profits escalate. He expressed this sentiment in an interview with the "Frankfurter Allgemeine Zeitung" (Friday edition).
Despite his backing for progressive taxation, Roßmann contested the notion of a billionaire tax. He asserted, "The prosperity of a nation relies on having successful entrepreneurs, who may also be billionaires."
The forthcoming proposals for corporate tax reform in Germany, as detailed in the coalition agreement between the CDU/CSU and the SPD, focus primarily on decreasing the corporate tax burden and incentivizing corporate investments. They do not, however, implement a fully progressive corporate tax rate structure in a traditional sense.
The agreement, among other measures, proposes a gradual reduction of the corporate tax rate from the current 15% to 10%, to be executed in five annual steps starting from January 1, 2028, offering long-term tax relief for corporations. Furthermore, it outlines incentives like a temporary "investment booster" for 2025–2027 and improvements to support small and medium-sized enterprises (SMEs).
These proposals, aimed at stimulating investment and modernization, have garnered discussion regarding the fair taxation of companies and wealth. Roßmann's endorsement lends more prominence to this discourse. Despite his favor for progressive corporate taxes, the current reforms do not link the tax rate to company size or profitability, continuing with a flat or reduced flat rate for corporate taxes.
Roßmann, in agreement with implementing progressive corporate taxes for increased profits, expressed contrasting views against a billionaire tax, stating, "The prosperity of a nation relies on having successful entrepreneurs, who may also be billionaires." Meanwhile, the proposed tax reforms in Germany, focused on decreasing the corporate tax burden and incentivizing investment, do not implement a traditionally structured progressive tax rate system, with the corporate tax rate gradually reducing from 15% to 10%, and no linkage to company size or profitability.
