Wealthy individuals will not be exempted from Klingbeil's judgement
Federal Finance Minister Klingbeil Commits to Social Security Stability, No Relief for Top Earners
Amid increasing social security contributions outlined on payslips at the start of the year, there is a growing concern about the continuation of this trend unless political intervention occurs. The SPD is advocating for tax reforms.
In an interview with "Bild am Sonntag," Federal Finance Minister Lars Klingbeil, also the chairman of the SPD, highlighted the problems associated with the rising social security contributions, particularly their impact on employees' disposable income and companies' wage costs. He assured that the contributions need to be stabilized.
Klingbeil expressed concern about the possibility of a significant increase in health and long-term care insurance contributions, which can temporarily be offset by higher budget subsidies. However, he believes that this is not a sustainable solution as it relies heavily on the finance minister constantly allocating additional funds. Instead, structural reforms are necessary to permanently maintain the contributions' stability.
As for the planned tax reform by the black-red coalition, Klingbeil made it clear that he does not support relieving top earners. He argued that it would be unjust if those with higher incomes received more relief than lower-income earners. His primary focus for the upcoming budgets is to secure Germany's economic growth and job security, by lowering energy prices and boosting investments through super-depreciation.
Klingbeil also addressed the need for reform within the SPD, citing the party's poor election results as a sign that change is necessary. He expressed a desire to shift the party's focus from managing citizens' money to addressing the needs of working people.
Although no specific tax reform proposal targeting high earners has been announced, recent discussions and coalition agreements cover broader labor law, social security, and retirement planning reforms. These primarily focus on sham self-employment, pension guarantees, and strengthening company pensions, rather than adjusting contribution rates for high earners.
Source: ntv.de, rog/AFP
- Social Systems
- Lars Klingbeil
- SPD
- Pension Insurance
- Health Insurance
- Long-term Care Insurance
- Federal Finance Minister Lars Klingbeil, in his role as chairman of the SPD, is advocating for the implementation of structural reforms to permanently stabilize rising social security contributions, including those in pension insurance, health insurance, and long-term care insurance.
- In response to concerns about the financial impact of social security contributions on both employees and businesses, Klingbeil has expressed his opposition to providing relief for top earners in the planned tax reform, arguing that such assistance should be distributed equitably among all income levels.
