Berlin tax plans can hit Munich Bitter - 660 million euros loss!

Berlin tax plans can hit Munich Bitter - 660 million euros loss!

München, Deutschland - On June 13, 2025, the focus is on the tax plans of the new federal government because it will be feared on the city of Munich. As tz.de , Munich is expected to receive around 660 million euros less in income from income and trade tax. Especially the year 2028 will meet the city the strongest with a loss of around 240 million euros. These financial losses could have serious consequences for the municipal infrastructure and services.

The city combing explains that trade tax and part of the income tax represent the most important sources of income in Munich. In 2023, 40,893 companies in Munich paid around 2.8 billion euros in trade tax. The 300 largest companies alone contributed 1.9 billion euros, 69%. For the ten largest companies, the payment adds to 813 million euros, which makes up for 29% of the total income.

political reactions and demands

Munich city politicians criticize the federal government and call for a corresponding compensation for tax failures. Christian Köning, the head of the SPD parliamentary group, emphasizes that the effects of the tax plans cannot be compensated for without cuts in important civil services such as daycare fees and city libraries. The city councils Krause and Frey have also asked the Federal Government to initiate a local investment program in order to alleviate the negative consequences of the tax plans.

This tax reform goes back to the coalition agreement of the new federal government, which was signed on May 5, 2025. The planned changes include a gradual reduction in corporation tax from 15% to 10% from 2028 and an increase in the minimum rate of 200% to 280%. In addition, the sales tax rate for food in catering will be reduced to 7% from 2026, while the tax load for small and medium -sized incomes is to be reduced. This could potentially lead to a larger tax burden for the municipalities because they are directly affected by these changes.

Tax policy in context

In Germany, tax revenue becomes crucial for the financing of public services such as education and road construction. The discussion about tax policy was a central topic in the Bundestag election campaign, especially against the background of stagnating economic growth, where the gross domestic product (GDP) remained at the level of 2019 in 2023. The tax rate was around 23%, with revenue of around 918 billion euros in relation to the federal government, whereby a tendency towards over a trillion euro will be sought for the future.

The political approaches to tax reform divergence strongly. The CDU/CSU and the FDP support tax cuts as a means of promoting economic growth, while the SPD and the Greens are more of a focus on tax incentives for investments. The various approaches not only reflect economic, but also deeper political values ​​that will play a role in the Bundestag election on February 23, 2026.

The upcoming tax plans could have far -reaching financial effects, especially for cities like Munich that rely on stable income in order to maintain their infrastructure and services. The political discussion about the financial framework and their opportunities and challenges will be decisive in the future.