Linke on finance and taxes

The Left wants to abolish the debt brake because, in the party's view, it blocks needed investment. The state is to invest in education, children and social security rather than cut there. In addition, the budget is to be checked in the future for its effects on gender equality.

The debt brake limits new government debt. The Left wants to abolish it. Then the state can spend more money. The money should go to schools, daycare and social services. The budget should also treat women and men fairly.

The party wants to hire more teachers, expand school social work and daycare support, develop university infrastructure and strengthen student services organizations. Investment is also planned in digitalization and social infrastructure. Programs for child and youth work, democracy promotion, culture and gender equality are to be stably funded. Under gender budgeting, a mandatory gender analysis would be part of drawing up the budget. For financing, the program points to higher contributions from wealth, top incomes and financial transactions.

The Left wants to give cities and towns more funding and more reliable funding. At the federal level, the Gewerbesteuer (local business tax) is to become a municipal business tax that depends less on the economic cycle. The federal government is to fully cover costs and tax losses caused by its laws.

Cities and towns should get more money. The local business tax should be changed. It should bring in steady money even in bad times. The federal government should pay when its laws cause costs. Towns with old debts should get help.

The program invokes the Konnexitätsprinzip, the principle that whoever causes tasks or revenue losses by law should pay for them. Municipalities are to get relief on legacy debts and on the paperwork for funded projects. Reliable programs for social housing and for accessible, climate-friendly modernization are planned. Culture, gender equality, protection from violence and civil society facilities are to receive lasting funding. The party sees this as a way to counter poverty, out-migration and social division.

The Left wants to levy the wealth tax again, with an allowance of one million euros per person. It adds a reform of the inheritance tax, a one-time wealth levy and an end to Ehegattensplitting (joint tax filing for married couples). The party expects up to 1.7 billion euros a year in extra revenue for the state.

Very rich people should pay a tax on their wealth again. The first million euros stays tax-free. A home the owner lives in should be spared. Large inheritances should also be taxed more. The tax break for married couples should end.

Under the constitution, wealth tax revenue goes to the states. Owner-occupied homes are to be spared. The program bases the figure of 1.7 billion euros a year on estimates by financial economists at the German Institute for Economic Research and says this makes its proposals affordable. The inheritance tax is to be reformed so that very large fortunes are not passed on without any effort by the heirs. A one-time wealth levy is meant to spread the burdens of crises fairly.