Increased Social Security Contributions Advocated for Higher Earnings - Advocates push for increased social contributions from high-income earners
The Left Party in Germany advocates for higher social contributions from top earners to finance the nation's social systems. Party leader Susanne Schaper argued, "Those earning six- or seven-figure incomes should pay their fair share, including an inheritance tax."
According to Schaper, the current contribution assessment limits for pension, unemployment, health, and long-term care insurance only apply to incomes up to 96,600 and 66,150 euros respectively. Contributions are tax-free beyond these thresholds.
Data from Saxony's state parliament reveals that in 2022, there were 499 income millionaires in the region. In 2014, this figure was less than half (230). The highest-earning individual bagged nearly 24 million euros that year. In total, income millionaires accounted for approximately 1.2 billion euros.
Schaper also called for increased tax audits of million-euro incomes, stating that the tax administration only examines a small fraction of such incomes. According to The Left, the audit rate has been below 30 percent since 2014, and in 2021, only 4 percent, and in 2022, just 1 percent of those affected were scrutinized. This, says The Left, is unacceptable, especially for such significant earnings.
It is worth noting that as of recent data, Germany does not have specific social contribution rates for high incomes as demanded by The Left Party. The current system, while uniform across Germany, caps contributions at a certain income level, with no additional contributions beyond that threshold for very high incomes.
Regarding long-term care insurance in Saxony, employers pay a lower share (1.2%) than in other states (1.7%), while employees pay a higher share. However, no federal state currently imposes additional social security contributions on high earners.
According to Saxony's employment and social affairs ministry, the rates shown are for general agreements and may vary depending on specific collective bargaining agreements. These rates are set to ensure fairness and do not discriminate against employees based on income level.
In contrast, The Left Party is of the opinion that these rates will create a fairer country, enable long-term investment in infrastructure, and protect the common good. Nonetheless, the party's proposals for higher social contributions remain a point of contention in German politics.
- The Left Party in Germany believes that implementing higher social contributions from top earners, particularly those with six- or seven-figure incomes, in areas such as employment policy, pension, unemployment, health, and long-term care insurance, could financially support the nation's social systems and provide a means to implement their policy ideas, like investing in infrastructure and protecting the common good.
- In the context of the ongoing debate on employment policy, business, politics, general-news, and finance, the Left Party's proposal for increased taxes on high incomes, including inheritance tax and enhanced tax audits, is aimed at ensuring fair distribution of financial burden and addressing the growing income disparities across the country, particularly in regions with high concentrations of million-euro earners, like Saxony.
