Increased financial obligations in social systems for higher-income earners through mandatory contributions proposed in the provided link. - Increase Demand for Elevated Social Contributions Among High-Earning Individuals by Progressives
High-Income Earners Faced with Higher Social Contributions Proposal in Saxony
The Left party in Saxony is advocating for top earners to contribute more towards financing the nation's social systems. Party and faction leader, Susanne Schaper, emphasizes the importance of taxing appropriately and implementing an inheritance tax for those with six- or even seven-figure incomes.
"This doesn't make anyone poor, but makes us all richer," Schaper asserts, noting that such measures would contribute to making the country fairer, investing in long-term infrastructure development, and maintaining the commonwealth. Initial reports of this proposal were published in the"Sächsische Zeitung" and "Leipziger Volkszeitung."
Schaper highlights the contribution assessment limits for various insurance systems, stating that contributions for pension and unemployment insurance are only due for annual incomes up to €96,600, while for health and long-term care insurance, the limit is €66,150. Any income beyond these limits is contribution-free.
As of 2022, there were 499 income millionaires residing in Saxony, according to data requested from the state parliament by the Left's chairwoman. The Ministry of Finance currently only possesses complete data up to 2022, indicating a notable increase in income millionaires compared to 2014, when the number was just over half as large (230).
The Left party criticizes the tax administration for only auditing a small fraction of million-dollar incomes, with the rate never exceeding 30% since 2014 and dropping to four and one percent of the affected individuals in 2021 and 2022, respectively. Schaper stresses that such large incomes must be taxed correctly to ensure fairness.
In comparison, Bavaria and North Rhine-Westphalia have significantly more top earners than Saxony, with 6,801 and 6,550, respectively.
Die Linke historically supports policies aimed at reducing income inequality and increasing taxation on the wealthy, such as fair taxes, rent caps, and prioritizing social welfare and public services. These efforts are part of a broader strategy to redistribute wealth and address economic disparities, potentially impacting high-income earners across Germany if implemented nationwide. However, specific details about Saxony or comparisons to other states are not provided in the available sources.
- The Left party in Saxony, advocating for an increased contribution from high-income earners, calls for a review of the current employment policy to potentially raise taxes for top earners and implement an inheritance tax, with the aim to finance social systems and make the country fairer.
- In the broader context of politics and general-news, the implementation of such measures could potentially be a step towards die Linke's historically supported policies of reducing income inequality, increasing taxation on the wealthy, and addressing economic disparities, possibly affecting high-income earners across Germany.
