Robert Habeck, a prominent candidate from the Green Party, has sparked a heated debate with his proposal to introduce social security contributions on capital gains. This initiative aims to alleviate the financial burden on employees by expanding the funding base for social security. However, it has drawn significant criticism from parties such as the CSU, FDP, and SPD, who argue that it would adversely affect retirement savings and impose undue burdens on investors and businesses.
Critics, including the Techniker Krankenkasse, caution that this policy could lead to an increase in contribution rates, potentially reaching 20%. The Taxpayers' Association has highlighted that average employee households already contribute over half of their income to the state. The proposal has also raised concerns among shareholder protection groups about its potential negative impact on the middle class.
Despite the backlash, the Social Association Germany (SoVD) supports the plan, viewing it as a step toward greater equity. Proponents argue that the current taxation on capital gains, set at 25% plus a solidarity surcharge with an exemption of 1,000 euros, lacks fairness. They believe incorporating capital gains into social security funding could enhance solidarity and reduce inequality, as supported by research linking higher social spending to decreased economic disparities.
Health Minister Karl Lauterbach has suggested that privately insured individuals should also contribute more significantly to the system. Meanwhile, the Green Party assures that protective measures, such as generous tax-free allowances, are part of the proposal to safeguard small savers from excessive taxation. The debate continues as political parties and stakeholders weigh the implications of this contentious proposal.
