Germany is witnessing a heated debate over the reform of inheritance tax, with significant political divisions emerging.

The Union, supported by the FDP and AfD, proposes tax relief for heirs, allowing them to rent out inherited family homes without incurring inheritance tax.

This move aims to alleviate fears that high taxes could prevent property inheritance.

In contrast, the SPD and Greens advocate for higher taxes on large inheritances to address wealth inequality.

Bremen has already submitted a proposal to the Bundesrat to increase taxes on substantial inheritances, while maintaining exemptions for smaller ones.

The debate highlights the broader issue of wealth distribution in Germany, with various parties pushing for changes that reflect their economic philosophies.