German top court upholds reunification solidarity tax

The Federal Constitutional Court has decided that the solidarity surcharge may continue to be levied. Companies, investors and well-earned earners pay it. FDP, CDU/CSU and large capital do not like the verdict.

The German Constitutional Court has upheld the constitutionality of a solidarity tax to cover the costs of the unification of the two Germanys.

Effects of the Federal Constitutional Court’s Judgment on Germany’s Solidarity Surtax

Surtaxes such as Germany’s solidarity surtax run counter to the principles of simplicity and transparency of the tax system because they impose an additional layer of tax on taxpayers and create a more complex tax structure that often obscures the actual tax burden.

German top court upholds reunification solidarity tax

A judge ruled that Germany's solidarity tax is still necessary to cope with the costs of reunification. Just 10% of the highest income earners are still subject to the tax, in addition to businesses and investors.

The soli was supposed to cushion the burden of reunification. But does unity still cost money today? A verdict from Karlsruhe protects the coalition negotiations in Berlin from problems.

That is what the Federal Constitutional Court announced.