German Court Reviews Legality of Solidarity Surcharge
The Federal Constitutional Court in Karlsruhe debates whether the solidarity tax remains constitutional after changes in its application.
- The solidarity surcharge, introduced to fund reunification costs, is under scrutiny for its continued application to high earners and corporations.
- Six FDP politicians have filed a constitutional complaint, arguing the surcharge became unconstitutional after the Solidarity Pact II ended in 2019.
- The government defends the surcharge, citing ongoing financial needs from reunification, infrastructure, and other state obligations.
- Experts presented differing views on whether the surcharge requires a specific financial purpose, with some suggesting it lacks a clear justification now.
- A potential ruling against the surcharge could create a significant budget shortfall, with implications for future government funding.
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