(New: third to last paragraph, 3rd, 4th and 5th sentences with more details about Habeck’s ideas)
BERLIN (dpa-AFX) – The German Federation of Trade Unions (DGB) welcomes the controversial move by Green Party lead candidate Robert Habeck to use capital gains to finance social contributions. “Robert Habeck is right,” said DGB board member Anja Piel to the German Press Agency in Berlin. The employee wing of the CDU, the CDA, showed fundamental openness to attracting more contributors to the solidarity systems.
“The fact is that our society is becoming increasingly wealthy, but very few people get rich through work,” said CDA chairman Dennis Radtke. Without long-term adjustment to this development, acceptance of the taxes will decline. “We should anticipate this early on,” said Radtke. “In principle, I am open to broadening the financing of social insurance.”
AfD and SPD against Habeck’s proposal
Habeck had suggested that income from capital gains also be used to finance health insurance, for example. Less than six weeks before the federal election, harsh reactions came from the CSU and FDP. Your party leaders warned against reaching into people’s pockets.
The criticism continues. According to a statement, the AfD’s deputy federal spokesman, Peter Boehringer, said: “Robert Habeck’s proposal to burden capital gains with social security contributions in the future is a slap in the face to German savers.” Serpil Midyatli, SPD deputy leader and Schleswig-Holstein’s SPD parliamentary group leader, said: “Instead of asking people who are making provisions for old age to pay additional money, we want everyone to participate in solidarity in financing health insurance.” The Greens also want such citizens’ insurance, including all income, including capital income, as shown in their 2020 basic program.
The FDP also followed up: “Green politics is always the same: it is promised that it would cost nothing or would only affect the so-called rich,” said designated Secretary General Marco Buschmann. “The truth is: It always affects normal people who want to build something for themselves through achievement.”
DGB: “Employees urgently need relief”
Habeck was asked how he wanted to address rising health insurance contributions. The Techniker Krankenkasse had warned of an increase from the current 14.6 plus an average of 2.91 (additional contribution) to 20 percent in the future. The main reasons for the increase in contributions that have been noticeable for years are medical and technical progress, aging and reforms for better conditions in nursing and patient care.
Piel said: “Employees urgently need relief.” The DGB has long been calling for contributions to health and nursing care insurance to also be collected from capital income. That would be fairer. “It is important to set an allowance for this.” Otherwise, those who already pay high contributions would be burdened. But the really big fortunes would have to be involved. “Strong shoulders can simply lift more.”
Health insurance circles: “If rich people pay more, contributions could go down”
In health insurance circles, Habeck’s proposal is at least partially discussed as viable. “Rich people with high capital income pay almost nothing today,” it says, according to information from the German Press Agency. “If rich people seriously pay more, contributions could go down.” But such a model must be designed and calculated precisely so that the desired effects are achieved.
Radtke called sustainable financing of the social security systems “one of the major tasks of the coming government.” However, the CDA boss expressly did not agree with Habeck’s idea. The topic is not suitable for quick shots in the election campaign. Contribution funds and tax money would have to be separated again. “It urgently needs to be cleaned up.” The chairman of the Union parliamentary group’s workers’ group, Axel Knoerig, said: “With Habeck’s initiative, I am missing how we can relieve the working middle class, who also make private provisions.”
Greens: Well thought out concept
Green parliamentary group leader Katharina Dröge defended Habeck’s move. It’s not about people with a little money in their accounts. “It is crystal clear in the debate that they are not meant,” she said in Berlin. It’s about a well thought-out concept with high allowances. Dröge did not give any figures either.
Habeck emphasized that it was about “incorporating the capital income of people who have large capital income.” The pressure on the wages of the working population is currently increasing. In the evening, he said in an interview with broadcaster RTL that his initiative was about millionaires. “The small saver doesn’t have to worry,” he explained. “It’s not about normal savers, it’s not about retirement planning. It’s about people letting their money work for them instead of working.”
The Green politician Katrin Göring-Eckardt said in the “Early Start” broadcast by ntv and RTL: “If you want justice, (…) then you have to make honest suggestions.”
Investor advocates from DSW see Habeck’s idea as “an attack on citizens’ private retirement provision.” “Because it would only affect private investors, as the larger assets are tied up in corporations,” said Managing Director Marc Tüngler./bw/DP/he