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Klingbeil rejects forgiveness for the financially prosperous.

Finance Minister Lars Klingbeil aligns with individuals of humble and moderate financial standing.
Finance Minister Lars Klingbeil aligns with individuals of humble and moderate financial standing.

Klingbeil rejects forgiveness for the financially prosperous.

Rising social security contributions remain a concern for Germany's federal finance minister, Lars Klingbeil, who has vowed to maintain stable contributions and mentioned tax reforms as a potential solution. Klingbeil, who is also the chairman of the SPD, spoke against providing relief to top earners in the planned tax reform.

In an interview with Bild am Sonntag, Klingbeil expressed concerns about the impact of increased social security contributions on both employees and businesses. He emphasized the importance of addressing the rise in contributions to ensure financial stability.

Furthermore, the minister noted that significant increases in contributions are expected for health and long-term care insurance, alleviated temporarily by higher budget subsidies. However, Klingbeil deemed this a temporary solution and demanded structural reforms to permanently stabilize contribution levels.

On the matter of the planned tax reform, Klingbeil expressed opposition to the relief of top earners. He stated that the focus should be on low and middle-income workers rather than on high earners like himself. The minister's primary goal in preparing the budgets for the current and upcoming year is to promote economic growth and job security.

To achieve this, Klingbeil aims to lower energy prices and increase investment through super-depreciation. He also announced plans to reorganize the SPD party, citing the party's low election results as a call for change.

While the progressive nature of Germany's income tax system already places a higher tax burden on top earners, the 2021 tax reform proposal did not appear to target tax cuts or relief for the highest income brackets. It seems that the reform is likely to continue the existing progressive tax structure.

Sources: ntv.de, rog/AFP

  • In response to rising concerns about social security contributions, Klingbeil proposed vocational training as a potential solution to support both employees and businesses, emphasizing the need for structural reforms in the community policy.
  • Given the current focus on economic growth and job security, Klingbeil is planning to lower energy prices and increase investment through super-depreciation, a move that may also impact finance, business, and general-news sectors.

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