The government is running out of money, but instead of consistently cutting spending, it prefers to look for new ways to increase revenue. The timing is striking, as many of these proposals have emerged in the weeks since Christmas, within just a few days of each other. Health, justice, and security provide the appropriate labels, while in practice the measures primarily do one thing: fill the coffers.
Inheritance Tax Reform: SPD Focuses on “Fairness” for Large Estates
The SPD is presenting a proposal that would place a heavier burden on large inheritances. The party intends to largely exempt smaller estates through a lifetime allowance of approximately one million euros. This shifts the burden upwards, and that’s precisely where the state expects more money for its coffers. (deutschlandfunk: 12.01.26)
The CDU/CSU and CSU criticize the plan, seeing risks for family businesses and investments. Regarding inheritance tax, the main point of contention lies with business assets, as it amounts to a reduction of existing privileges.
Sugar tax: The concrete impetus comes from a CDU-governed state
Schleswig-Holstein’s Minister-President Daniel Günther (CDU) announced a Bundesrat initiative for a sugar tax in the first quarter of 2026, officially bringing the issue back into legislative proceedings. The approach aims at prevention while simultaneously providing predictable revenue. (zeit: 21.12.26)
The German Medical Journal (Deutsches Ärzteblatt) also reports on the initiative and the political response, while the discussion is already focusing on the specific details. The crucial question is which products will be included, as this will determine the revenue generated.
Alcohol and Tobacco: Medical Institutions Advocate for New Levies
The President of the German Medical Association, Klaus Reinhardt, is calling for an additional levy on alcohol, tobacco, and sugar to increase funding for the healthcare system. He explicitly emphasizes earmarking the revenue, as this increases political support.
The German Medical Association elaborates on this approach in a separate publication, citing higher taxes on sugar, tobacco, and alcohol as an effective preventative measure. This creates a model designed to reduce consumption while simultaneously generating revenue that can be presented as healthcare financing.
Warning apps under scrutiny: German states seek a complete ban
Several German states are pushing for a complete ban on speed camera warning apps, arguing that they want to increase the effectiveness of enforcement. The initiative is currently being pursued through the Federal Council (Bundesrat), meaning it could quickly become federal law. (deutschlandfunk: 12.01.26)
The German Road Traffic Regulations (StVO) already prohibit the operation or carrying of devices for displaying traffic monitoring information, as courts have upheld this position for years. This makes a stricter ban politically easier to justify, but at the same time increases the likelihood of higher fine revenues.
The Insatiable Greed for Ever More Money
Ultimately, it all boils down to one common goal: higher revenues for a cash-strapped state. Health, justice, and security serve as justifications, while the expenditure side is hardly addressed. Added to this is the constant demand for higher taxes on the wealthy. This can be quickly sold politically as a “fair contribution.” Therefore, the decisive factor is not so much the motive as the effect, because new levies, taxes, and prohibitions primarily stabilize the budget. This makes it all the more interesting to consider what demands will follow next and what arguments will be used to support them once the existing levers have been exhausted.