CDU deputy leader Karin Prien calls for a tax on AI profits

Karin Prien, deputy leader of Germany’s Christian Democratic Union (CDU), has called for profits generated by artificial intelligence to be taxed, with the money going into education and opportunities for young people. According to Golem, her proposal adds to a split inside the conservative alliance and the federal government, where senior figures including Chancellor Friedrich Merz remain sceptical.

What happened

In an interview with the German magazine Stern, Prien said that if value is increasingly created through AI systems, this has to be reflected in the tax system. Golem reports that she sees new forms of taxation as unavoidable. Prien is the CDU’s stellvertretende Bundesvorsitzende, meaning one of the party’s deputy national leaders.

Prien links the idea to a wider demand for more investment in the younger generation. She suggested that revenue from a possible AI tax could fund education and Chancengerechtigkeit, a German term for fair opportunities, for children and teenagers. She also warned against treating an AI tax as a substitute for other reforms. In her view, the state must become more efficient and parts of the Sozialstaat, Germany’s welfare state, should be scaled back. Money freed up this way should, she said, be spent on supporting young people.

Her reasoning goes beyond funding. Golem reports that Prien said the gains from the AI economy must not benefit only a few people, and that growth has to remain environmentally sustainable. She said young people should be able to buy their own homes, rents must be affordable, and every family should be able to live on its income. She also called for more discussion of how AI and changes in the world of work could affect young people’s careers, a debate she believes has so far received too little attention.

Prien is not the first senior CDU politician to raise the issue. Golem notes that Federal Digital Minister Karsten Wildberger (CDU) earlier told the Berlin newspaper Tagesspiegel that the high revenues from AI should be taxed to pay for the coming restructuring of the economy. He later softened those remarks.

Others in government are firmly against the idea. Federal Economics Minister Katherina Reiche has so far rejected an AI tax, saying a few days ago that she wants to encourage growth through AI rather than discuss new levies. Friedrich Merz, who is both Federal Chancellor and CDU party leader, is also sceptical. He recently stressed that AI in Europe should first be expanded before anyone considers regulation or taxes. Critics of a special tax also argue that extra levies could push investors towards countries outside Europe.

Golem points out that it is still unclear how such a tax would actually be designed.

Why it matters if you live in Germany

For now, nothing changes for residents. There is no draft law, no defined tax rate and no agreed model. What the story shows is that a debate is underway at the top of the governing party about how the gains from AI should be shared, and that debate could shape policy that affects people living here.

• Parents and young people: Prien wants any AI tax revenue spent on education and fair opportunities for children and teenagers. If her idea gained support, schools and youth programmes would be the intended beneficiaries.
• Workers: Prien explicitly connects AI with changes in the world of work and the careers of young people. Her call for a broader discussion suggests the topic of AI and jobs is moving higher up the political agenda.
• Tenants and would-be homeowners: She ties her proposal to affordable rents and the chance for young people to build up property, issues that matter to many internationals facing tight housing markets in German cities.
• People who rely on social benefits: Prien pairs the AI tax with a call to scale back parts of the welfare state. Anyone who depends on state support may want to follow which parts of the system she and others have in mind, although Golem’s report does not specify them.
• People working in tech: The opposing view, that new levies could drive investors away from Europe, is a central concern for the industry. How the government settles this could influence investment in AI companies based in Germany.

What to watch next

The main question is whether Prien’s position gains ground within the Union, the alliance of the CDU and its Bavarian sister party, the CSU. Golem describes the alliance as divided on the issue, with two opposing camps, and notes that resistance within her own party is visible. Golem also reports that Prien is seen as a possible candidate for higher office, which may give her views more weight in the months ahead.

Watch, too, for a clearer line from the federal government. Golem says there is currently no unified position: the digital minister has signalled openness and then pulled back, while the economics minister and the chancellor are against new taxes on AI for now. Any concrete proposal on how an AI tax would work, who would pay it and how much it would raise would be a significant step, since none of these details have been set out so far.

Finally, Prien’s call for a debate on how AI will change young people’s working lives may prompt further contributions from other parties, unions and employers. For internationals building a career in Germany, that discussion is worth following.

Source: Golem