By Josef Forster, Elias Sedlmayr and Jan W. Schäfer
Explosive results of the new BILD survey on the increase in citizen income.
The majority of Germans say: Regulated work is no longer worthwhile! Specifically: 52 percent of those surveyed agree with the statement. Only a minority of 40 percent is convinced of the opposite, eight percent cannot or do not want to give an answer here.
Even worse! Many recipients of citizen income increase their monthly income through undeclared work, collecting more than many honest employees.
Labor expert Professor Friedrich Schneider (64, University of Linz) to BILD: “I estimate that around a third of employable citizens’ income recipients earn black money.”
► With the current 3.9 million employable support recipients, this means around 1.3 million!
The problem has worsened since the beginning of the year. Expert Schneider: “The shadow economy will increase by around 20 billion euros in 2023 due to the high inflation rate and the resulting loss of income.”
As a result, the state lost around 2.4 billion euros in taxes and social security contributions.
Does a higher basic income rate lead to more undeclared work?
Labor market professor Peter Haan from the German Institute for Economic Research on BILD: An increase in citizen income could “result in recipients being less dependent on the additional income and thus reducing undeclared work”.
But: It is still unclear what connection there actually is between undeclared work and citizen income. According to Haan, this cannot be estimated at the moment.
Expert Schneider also explains: “Since many state transfers, including citizen income, are not sufficient for many, the incentive to earn money on the black is high.” There are especially employees in the construction, catering and hotel industries and in household-related services now more incentives to do undeclared work.
FDP: Will carefully examine the increase in citizen income
However, at least for the traffic light party FDP, it is out of the question to further increase the citizens’ income. Many liberals are already bothered by the planned increase to 563 euros.
FDP parliamentary group deputy Christoph Meyer (48) to BILD: “If the citizen’s income increases so much, all working people must also be able to understand it.” The FDP will examine exactly how Minister of Labor Hubertus Heil has calculated.
Meyer continues: “Even if the increase in citizen income is justified because of inflation, attention must be paid to acceptance by the population.”