Legislation on the Undead: A Look at the 'Zombie Law'
In a recent development, the global justice and anti-capitalist organization Attac Germany is launching a new push for a wealth tax. The goal is to progressively tax wealth over a million euros, with a maximum of 20% for billionaires, as stated by Julia Elwing from Attac.
This push for a wealth tax is rooted in the principle of equal burden, a principle that requires taxation based on individual financial capacity, as argued by lawyer Alexander Thiele. According to Thiele, this principle is a cornerstone of the general principle of equality.
Attac's campaign comes amidst growing concerns about wealth inequality in Germany. As of 2024, Germany had the fourth-highest number of billionaires worldwide, after the US, China, and India. The top 10% of Germans own over 60% of the total wealth, while the bottom 50% own about 2%.
The wealth tax, if implemented, would address these imbalances by increasing government revenues for social programs and correcting perceived tax imbalances where capital gains and inherited wealth are less taxed than labor income.
However, the push for a wealth tax has faced opposition. Critics argue that it could violate the German Basic Law, a concern raised by Federal Chancellor Friedrich Merz (CDU) this summer. Opponents also cite concerns about capital flight, administrative complexity, disincentives for investment, and potential negative impacts on economic growth or entrepreneurship.
Attac, however, believes that these fears are instilled irrationally by associations advocating for the interests of the rich. Julia Elwing from Attac stated that investments would suffer from social inequality instead of being harmed by taxing the rich.
The initiative for a wealth tax in Germany has been met with mixed responses from governing parties. Left-leaning parties and the Greens have been more open or supportive, while center-right parties and business-oriented factions usually oppose it.
As of the day before submission, Attac's petition had almost 70,000 signatures, surpassing the 30,000 signature threshold for consideration by the Petitions Committee. Julia Elwing from Attac expressed curiosity about how the governing parties would react to their arguments.
Since last year, the European Central Bank has published the "distribution-based wealth balance sheet", which presents the wealth distribution in Europe, including large fortunes. With a million-euro exemption per person, over 99% of people in Germany would not be affected by the wealth tax.
In an interview titled "Attac: 'Our Economic System is Poison for Democracy'", Gisela Dürselen explored Attac's views on the current economic system and their push for a wealth tax. In another interview, titled "Wealth Tax: Democracy Only Works with Justice," Julia Elwing further discussed the importance of a wealth tax for a fair and just society.
Alexander Thiele, in a study commissioned by the trade union-affiliated Hans-Böckler Foundation, argued that the wealth tax is explicitly allowed as a tax type in the German Basic Law and is even required, according to the principle of equal burden.
The debate on a wealth tax in Germany continues, with Attac pushing for a more equitable distribution of wealth and critics raising concerns about its potential impact on the economy. As the Petitions Committee considers Attac's petition, the future of a wealth tax in Germany remains uncertain.
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