Wealthy individuals should be taxed on their assets, advocates Bartsch
In the heart of Europe, Germany has been grappling with the issue of wealth inequality, as the net wealth of the ultra-rich continues to rise. The latest figures show that the net wealth of the super-rich in Germany reached an impressive €594.9 billion by the end of July, a significant increase from €500.9 billion in March 2019. This growth has not gone unnoticed, with the club of the super-rich in Germany expanding from 114 to 119 members since then.
Among the influential figures in Germany, Finance Minister Olaf Scholz has made headlines for his income. Scholz earns more than 15,000 euros a month without bonuses, a fact he recently acknowledged on Twitter. However, in response to internet users seeing him as rich, Scholz tweeted that he considers himself not rich. He further stated that, as Deputy Chancellor, he belongs to the very well-paid in the country and supports higher rates for the very well-paid, including himself.
This debate on wealth and income has sparked discussions among political parties. The Left Party, led by Dietmar Bartsch, has been vocal about the issue. Bartsch has criticised the growth of wealth among affluent people during the corona crisis, stating that millions of citizens are making significant sacrifices. He has called for appropriate taxes on high incomes, including himself, and suggested that politicians should pay into statutory pension and long-term care insurance.
The call for a one-time wealth tax and a major tax reform in Germany is not a new concept. Germany has a history of wealth and inheritance taxation efforts, including a notable inheritance reform after World War I in 1919. Matthias Erzberger’s ambitious inheritance reform introduced taxes targeting war profits and wealth increases, focusing on the wealthy. However, modern wealth taxes were abolished as unconstitutional, a situation shared with the Netherlands.
Without a one-time wealth tax, Germany’s approach to addressing income inequality relies primarily on social insurance and income taxation. The country's advanced social welfare system, originated under Bismarck in the late 19th century, provides a broad social safety net rather than relying on wealth taxation.
As the debate on wealth inequality continues, it remains to be seen whether Germany will revisit the idea of a one-time wealth tax or explore other fiscal and social policies to address the growing wealth gap. The call from politicians like Bartsch and Scholz for appropriate taxes on high incomes and for politicians to contribute to social insurance schemes may signal a shift in the conversation around wealth distribution in Germany.
In the midst of this wealth discussion, the topic of a potential one-time wealth tax has emerged amongst politicians, with The Left Party's leader, Dietmar Bartsch, advocating for such a tax. Meanwhile, Finance Minister Olaf Scholz, despite being categorized as one of the well-paid in the country, supports higher taxes on high incomes, including his own. These proposed changes could signify a shift in the discourse around wealth distribution in Germany, touching upon other elements of finance, business, politics, and general-news.
