German Tax Debate Clouds Family Business Successions
German lawmakers debate inheritance tax reforms as aging owners retire. Critics target wealth inequality while firms fear higher costs will hinder investment.
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Germany's Social Democrats propose a 5 million-euro ($5.89 million) inheritance tax allowance to reform inter-generational business transfers. The plan introduces a flat allowance with potential deferral for up to 20 years, reducing the current threshold of 26 million euros where assets can be transferred largely tax-free. These changes could disrupt the succession of 2 million mid-sized firms currently owned by aging baby boomers.
