Merkel and the CDU lost ground after Kirchhof proposed the introduction of a flat tax in Germany, again undermining the party's broad appeal on economic affairs and convincing many voters that the CDU's platform of deregulation was designed to benefit only the rich. This was compounded by Merkel's proposal to increase VAT to reduce Germany's deficit and fill the gap in revenue from a flat tax. The SPD were able to increase their support simply by pledging not to introduce flat taxes or increase VAT. Although Merkel's standing recovered after she distanced herself from Kirchhof's proposals, she remained considerably less popular than Schröder, and the CDU's lead was down to 9% on the eve of the election.