Kretschmer considers higher taxes for the rich – DIHK lowers expectations, companies warn of additional burden

Saxony's Minister President Michael Kretschmer is sparking a new debate with two sensitive topics: more full-time work – and the question of whether very large fortunes and inheritances should be taxed more heavily in the future. At the same time, the economic outlook is deteriorating according to the assessment of the German Chamber of Industry and Commerce (DIHK). This intensifies the political conflict between relief, consolidation, and investment.

In an interview with the "Neue Osnabrücker Zeitung," Kretschmer made it clear that he ultimately considers solutions "that benefit everyone" to be necessary. He referred, among other things, to job security and reliable tax revenues – and placed his call for more full-time work within a broader economic and social policy concept.

Kretschmer links labor debate with tax issues – and opens a door on wealth

What is particularly noteworthy is that Kretschmer did not rule out higher taxes on large fortunes and inheritances. At the same time, he set a clear order: from his point of view, tax increases would not be the first step, but the last component in a larger reform package. The goal should be to relieve lower incomes.

This combination of "more work" and "different burden sharing" is politically explosive because it directly affects different social groups: employees who discuss working time models and stress limits, as well as the wealthy and potential heirs, for whom any tax debate is quickly seen as a question of location. However, the statements made so far do not yet result in concrete legislative plans; initially, there is a recognizable attempt to open a reform discussion, not the announcement of an imminent decision.

DIHK revises expectations downward – the reasoning remains controversial

Additional pressure comes from the DIHK's economic assessment: DIHK Chief Executive Helena Melnikov told "Welt am Sonntag" that they now expect growth of only 0.3 percent for the current year. At the beginning of the year, according to this account, 1.0 percent had still been expected.

It is important to note that this 0.3 percent figure is not documented in all DIHK publications outside the quoted interview. Recent DIHK analyses have also spoken of weak growth, but statistical effects were also highlighted as a significant influencing factor. Politically, this makes a difference: whether a forecast changes mainly because of an external shock or because of structural weaknesses has consequences for the question of whether short-term stabilization or long-term restructuring is needed.

Melnikov mainly attributed the deterioration to the Iran war. As a result, energy and raw material prices have risen sharply, putting additional strain on many companies. This argument places the debate about taxes and relief in an environment where companies fear new cost risks – and any additional levy is perceived more as a burden than as a scope for redistribution.

What this means for the tax debate

Kretschmer's approach – relief for lower incomes, possible greater participation of very large fortunes as the "last step" – is clearly aimed at political balancing logic: more net income where consumption and acceptance are to be supported, and ultimately financing that does not rely exclusively on earned income.

But especially with weak growth, the order becomes crucial. Reform packages that rely on more labor volume and higher revenues come under credibility pressure more quickly if companies simultaneously postpone investments or cannot pass on cost increases. In this situation, any tax discussion is likely to be judged even more by whether it is predictable, constitutionally sound, and administratively feasible – and whether it weakens or specifically strengthens investment incentives.

Restrictive signals are also intensifying in foreign policy and migration

In addition to the domestic economic debate, there are further developments that indirectly affect location issues. The US government is tightening the requirements for obtaining the so-called Green Card. According to an instruction from the immigration authority, the consular procedure in the home country should generally be used for this. Until now, visitors – such as tourists or students – could also apply in the US under certain conditions.

A policy memorandum from the US agency explicitly does not classify adjustment of status as automatic, but as a discretionary decision. For those affected, this increases uncertainty: those who could previously expect a status adjustment in the US may be referred more often to procedures outside the country – with possible consequences for planning, employment, and mobility.

In foreign policy, Federal Foreign Minister Johann Wadephul at the same time sought to demonstrate unity. At a meeting with counterparts in Helsingborg, Sweden, he continued to describe the US as a reliable partner in NATO and pointed out that US Secretary of State Marco Rubio had emphasized the alliance's unity. According to sources close to the talks, the meeting also served to prepare a NATO summit in Ankara, which is to take place in six weeks and send a signal of unity. This contrasts with repeated criticism from US President Donald Trump of European NATO partners.

Domestic side issue: dispute over stranded humpback whale in the Baltic Sea

Another political reaction comes from Mecklenburg-Western Pomerania. Environment Minister Till Backhaus defended his role in the rescue attempt of a humpback whale stranded in the Baltic Sea against criticism. He told "Stern" that he had acted responsibly; it saddened him that the whale was dead. He rejected the accusation that the marine mammal had suffered longer because of the rescue operation by a private initiative. The state government had declared the rescue attempt completed at the beginning of May. The humpback whale had stranded several times in the Baltic Sea since March.

Conclusion: Many signals, few decisions – but increasing pressure to act

The situation is intensifying in several areas at once: Kretschmer is opening a debate about working hours and wealth taxation, while the DIHK is simultaneously painting a much more cautious picture of the current year. Added to this are international signals – from more restrictive US immigration practices to demonstrative NATO messages – as well as domestic political conflicts that affect trust in government action.

For political assessment, it will be crucial whether the positions lead to reliable, affordable, and legally secure steps – and whether the promised relief for lower incomes actually comes first before any decision is made about higher burdens on very large fortunes.