5 percent less for everyone? Who Spahn's plan affects:
Jens Spahn wants to cut subsidies to finance the tax reform. But the plan only partially works.
focus.de/finanzen/reformen/5-prozent-weniger-fuer-alle-wen-spahns-plan-trifft_b6f2e283-f008-43bf-9852-af0d9aae8a44.html
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Subsidy Cuts vs. Tax Reform Financing DebateSpahn's plan saves 3.8 billion euros yearly; SPD proposes raising taxes on top earners starting in 2026.
- Jens Spahn proposes a uniform five percent reduction in all subsidies and tax benefits to fund income tax reform.
- This approach would generate around 3.8 billion euros annually, covering only about ten percent of the needed 30 billion euros.
- Concerns arise that this method shifts costs onto broad population groups who are intended to benefit from the tax relief.
- The SPD seeks to finance the relief mainly through higher taxes on top earners above approximately 105,000 euros and by reforming inheritance tax.
For me, it is absolutely clear that there can be no income tax reform in which the top earners in this country do not pay more.— German Federal Minister of Finance Lars Klingbeil (SPD) said this in the context of the discussion about financing the income tax reform.
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5 percent less for everyone? Who Spahn's plan affects: Jens Spahn wants to cut subsidies to finance the tax reform. But the plan only partially works.
focus.de/finanzen/reformen/5-prozent-weniger-fuer-alle-wen-spahns-plan-trifft_b6f2e283-f008-43bf-9852-af0d9aae8a44.html
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Key FactsSpahn Proposes Major Cuts to Subsidies and Tax Benefits
May 12, 2026 · Reading time: ~45 sec.
Summary created with AI assistance · Source: focus.de
Summary created with AI assistance · Source: focus.de
- Jens Spahn recommends a uniform 5% reduction across all subsidies and tax advantages.
- Smaller programs under €50 million annually, often lacking measurable impact, face elimination.
- The approach aims to free up at least €10 billion to support tax relief measures.
- Spahn acknowledges strong political resistance due to subsidies serving as influential leverage points.
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