Hardworking Individuals not to be released, claims Klingbeil
Rising social security contributions, a concern for both employees and businesses, might persist unless political action is taken, according to Federal Finance Minister Lars Klingbeil. In an interview with "Bild am Sonntag," Klingbeil underscored the importance of maintaining stable contributions to social security for employees and companies.
Notably, contributions for health and long-term care insurance are predicted to increase, a hike that can temporarily be offset by higher budget subsidies. However, Klingbeil contends that this is not a sustainable solution, explaining, "The finance minister cannot be constantly called upon for more money. We need structural reforms to permanently stabilize the contributions."
When discussing the planned tax reform of the black-red coalition, Klingbeil emphasized that he believes it's inappropriate to offer more relief to top earners than to individuals with lower and middle incomes. "People who earn as much as I do don't need relief from the state. I'm thinking of hardworking people with low and middle incomes," he asserted.
Prioritizing budget preparation for the current and upcoming years, Klingbeil aims to ensure Germany maintains a growth trajectory and secures jobs, focusing on lowering energy prices and boosting investments through super-depreciations.
As the leader of the SPD, Klingbeil expressed a desire to reform his party, citing the 16.4% in the election as a signal that change is needed. He noted, "People felt that we cared too much about citizens' money and not enough about people at work."
Regarding the coalition agreement between the CDU/CSU and SPD, economic and tax reforms aimed at enhancing business investment and reducing the tax burden on companies have been outlined. Key points include plans to lower the corporate tax rate, introduce investment incentives, and reduce electricity taxes. However, specific details on addressing rising social security contributions in health and long-term care insurance are not explicitly mentioned in the available information.
The Federal Finance Minister, Lars Klingbeil, emphasizes the need for political action to address rising social security contributions, which are a concern for both employees and businesses. In the context of the coalition agreement between the CDU/CSU and SPD, there are plans to lower the corporate tax rate, introduce investment incentives, and reduce electricity taxes, but specific details on addressing rising social security contributions in health and long-term care insurance via vocational training subsidies or other means, are not explicitly mentioned.
