Scholz's Party Claims 'Temporary Crisis Tax' on Super-Rich May Help Fund German Army

MOSCOW (Sputnik) - Saskia Esken, the co-leader of German Chancellor Olaf Scholz's Social Democratic Party (SPD), told German media on Tuesday that a possible "temporary crisis tax" on billionaires and multimillionaires, who constitute a super-rich class, may help cover the growing needs of the German armed forces.

On Monday, German media reported that the SPD was mulling the possibility of imposing an extra tax on wealthy citizens to tackle challenges caused by the financial crisis, help transform Germany into a green economy, foster education and create a million new jobs by 2030.

Esken noted that Berlin would have to come up with a new funding plan for its defense forces after a special fund worth 100 billion euros ($106.8 billion) is exhausted, adding that an extra tax on the super-rich could help resolve the issue.

She also expressed the belief it would be "fair" to impose taxes on people with excessively high incomes.

"Even in years of crisis, we saw very large private assets and extremely high incomes in Germany growing significantly, while others were fighting for their existence. So there are those who benefit from these crises. I believe that if we fairly tax these very large assets and very high incomes, and explain what we need the money for ... then crisis beneficiaries will be ready to make a greater contribution," Esken was quoted as saying.

She also reportedly suggested money received from such taxes could be used to ensure the equitable and successful education of German children.

In June 2022, the German government passed Scholz's initiative to create a special fund worth 100 billion euros for the country's armed forces amid Russia's special military operation in Ukraine.

The fund was part of the chancellor's plan to upgrade the German army and make it the largest in Europe.