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Potential Scrapping of Germany’s Solidarity Tax at Constitutional Court

The German Federal Constitutional Court is set to evaluate a lawsuit from six members of the Free Democratic Party (FDP), led by Christian Dürr, challenging the legality of the ongoing Solidarity Tax (Soli). Introduced in 1995 for the reunification efforts, the tax currently only affects high earners and corporations. The FDP argues it is unconstitutional, claiming that the financial need for the tax has diminished, while experts caution that abolishing it could cost the government approximately €12 billion in 2025. A ruling will emerge in the coming months.

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