FACTBOX - German parties' election policies

REUTERS - Germany's parties are campaigning for an election on Sept. 27 which could usher in a new coalition. Polls show Chancellor Angela Merkel's conservatives (CDU/CSU) may win enough votes to form a coalition with the pro-business Free Democrats (FDP).

Below is a comparison of the leading parties' policies, highlighting their contrasting positions on issues where there are major differences:

TAXES

* CDU/CSU - Reject tax increases and call for a two-step cut in the lowest income tax bracket to 12 percent from 14 percent. Want to raise the threshold for highest regular income tax rate of 42 percent to 60,000 euros ($84,320) from 52,552 euros.

* SPD (Social Democrats) - Want to cut the lowest income tax rate to 10 percent from 14 percent. Would raise the top tax rate -- including a "rich tax" for the super wealthy -- to 47 percent from 45 percent. Would tax stockmarket trades of 1,000 euros or more at a rate of 0.5 percent or 1.5 percent.

* FDP (Free Democrats) - Plan tax cuts aimed at families and middle income earners worth up to 35 billion euros. The party wants to simplify the tax system and shift to a three-band system, with rates of 10 percent, 25 percent and 35 percent.

* GREENS - Want to raise regular top tax rate to 45 percent from 42 percent. Plan sales tax on financial transactions to prevent speculation.

* LEFT PARTY - Want a "redistribution from the top to the bottom". Only incomes of above 12,000 euros per year should be taxed and the top tax rate should be raised to 53 percent. Wants a "millionaire's tax" on private wealth.