Economic Challenges: Inheritance Tax Before the Constitutional Court: How Much Exemption Can Business Assets Handle?
The Federal Constitutional Court is re-examining the inheritance tax. Rürup calls for low rates and a broad basis for assessment, Hüther defends the exemption of business assets.
The German Constitutional Court has heard two cases on the reform of inheritance tax. Handelsblatt chief economist Bert Rürup and Michael Hüther, director of the Institute of the German Economy, discussed the issue on the Economic Challenges podcast. Rürup advocates for low tax rates and a broad tax base, similar to income tax, and warns that if reform ignores the shift of private assets to partnerships, it may lead to a revival of the wealth tax.
Hüther supports exemptions for business assets, arguing that inheriting a company involves taking on responsibility, and that inheritance helps equalize wealth distribution. The court's 2014 ruling may be reconfirmed, but Rürup and Hüther have differing expectations about the upcoming judgment.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
