June 2 (Bloomberg) -- Germany’s main opposition Social Democratic Party plans tax increases if it wins next year’s federal election, its chairman, Sigmar Gabriel, told Focus magazine.
Since Germany is committed to rolling back its deficit, the government would need to tap new tax sources to boost spending on education, Gabriel was cited as saying in an interview.
The SPD would raise the top rate of income tax to 49 percent from 42 percent for single people earning over 100,000 euros ($124,000) per year and couples earning over 200,000 euros, Gabriel was cited as saying.
The party would also increase old-age care insurance to 2.5 percent of gross pay from 1.9 percent, boost dues on profit on capital investments and reintroduce a wealth tax for the highest earners, he said. The election is due in the fall of 2013.
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