▶️ Old money for new ideas: Inheritance tax as innovation capital – The push for earmarked start-up financing
Germany's inheritance tax is to be discussed in order to channel old capital specifically into startups. | The proposal envisions using 1–5% of inheritance tax revenue for young technology companies. | | Critics note that constitutional and federal hurdles, as well as the principle of total funding, stand in the way of the plan. | In purely mathematical terms, €100–500 million per year could be mobilized, but this is only a drop in the ocean compared to other venture capital. | | The substantial exemption for business assets reduces real revenue and weakens the impact of earmarking the funds. | Germany is losing talent and capital abroad because institutional investors hardly invest in venture capital. | The initiative sends a political signal, but it is not a structural solution to the capital deficit. | Opening pension funds and insurance companies to venture capital investments and implementing the location promotion law would be more sustainable. | The debate links tax policy, innovation promotion, and questions of distributive justice. Overall, the idea remains interesting, but its effectiveness depends on political, legal, and fiscal realities. [...]
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