German top court upholds reunification tax
The 'solidarity surcharge' remains in place today - albeit in a narrower form - angering economically liberal lawmakers.
Last year, the surcharge, which amounts to 5.5% of income and corporation tax, contributed around 12.6 billion euros ($13.6 billion) to German government coffers.
The reunification of Germany in 1990 brought with it a major economic project to bring the communist regions of the east in line with their western neighbours, a goal that by some standards has still not been reached: today, incomes are generally lower in the east and unemployment is higher.
The six plaintiffs that challenged the solidarity tax in court, all members of the pro-business Free Democrats (FDP), say it violates the constitution because the 'solidarity pact' that it was part of, designed to split the costs of reunification, expired in 2019.
They also take issue with the fact that since 2021 some 90% of taxpayers have been exempt, which they consider a violation of the principle of equal treatment.
($1 = 0.9243 euros)
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