Thalheimer became a founder member of the Communist Party of Germany (KPD), and he was recognised as its main theorist.
Thalheimer was part of the local government in Württemberg serving as Minister of Finance during the crisis of 1923.
In 1927, Thalheimer gave a series of lectures at the Moscow Sun Yat-sen University that were then published as a textbook in philosophy (the English translation appeared as Introduction to Dialectical Materialism, New York, 1936).
Beginning at the start of 1935 Thalheimer began writing a regular column on international news for Workers Age, the official newspaper of the Communist Party of the USA (Opposition), headed by Jay Lovestone.
Here he became involved in an argument with Andrés Nin over the Workers' Party of Marxist Unification's (POUM) condemnation of the first Moscow Trial.