Inheritance tax debate: super rich or tax avoiders?

Inheritance tax debate: super rich or tax avoiders?

Is the topic of inheritance tax currently a hot topic? Yes, it does! On November 8, 2025, the vote on the inheritance tax initiative will become a hot topic of discussion. SP Vice President David Roth is firmly behind the initiative, which calls for an inheritance tax of 50 percent on assets over 50 million francs. Roth argues that the super-rich in particular are responsible for a significant share of climate change. He sees the initiative as an implementation of the polluter pays principle. Various aspects and political opinions on this topic shed light on the complexity of inheritance tax.

In contrast to this is SVP National Councilor Diana Gutjahr, who argues vehemently against this initiative. She is of the opinion that wealthy people are already investing significantly in climate protection and that there is a risk that many of those affected may leave. Gutjahr highlights that the richest percent of the population already bears over half of all property taxes and more than 40 percent of federal tax revenue. This is where two opposing perspectives meet that are aimed at the future of inheritance tax.

Inheritance tax: background and regulations

A look at the basics of inheritance tax reveals that it is due in Germany if the inheritance exceeds a certain exemption amount. An inheritance can consist of money, real estate or a company. The allowance varies greatly depending on the degree of relationship. Spouses and children have losses of 500,000 euros and 400,000 euros, while non-relatives only enjoy an allowance of 20,000 euros. In addition, the tax rates also differ greatly in the different inheritance tax classes and can be up to 50 percent, as steuerklasse.com reports.

Inheritance tax has far-reaching effects on the distribution of wealth in society. A large part of private wealth is not transferred through earned income, but through inheritance and gifts. This ensures that an inheritance often acts as a multiplier of existing inequalities. In the upper half of wealth, wealth is usually passed down through families, which can increase the discrepancy between different social classes, according to Finanzkun.

Political debates and future outlook

The political debate surrounding inheritance tax remains polarized. Proponents of greater taxation argue for equal opportunities and against the concentration of wealth in a few hands. At the same time, opponents warn of possible “double taxation” and emphasize the importance of property rights. Reform proposals to reduce tax allowances and increase taxation of non-family assets are met with resistance from all sides. The high number of exemptions protects smaller estates, which limits the redistributive effect of the tax. What is needed here is a discussion across society about wealth and social advancement opportunities, according to [finanzkun.de](https://finanzkun.de/de/artikel/erbschaftssteuer-und-vermoegens Distribution/).

How will the vote result affect the future of inheritance tax? In the coming period, the arguments from both sides will gain further momentum, and the issue will affect each of us - no matter what financial league we play in.