Enhanced social security contributions proposed for higher earnings - Advocates for the left push for increased social contributions from higher-earning individuals
Increasing Social Contributions for Top Earners Advocated by The Left in Saxony
Saxony’s Left party is pushing for a fairer distribution of financial burdens among top earners to help fund social systems. Susanne Schaper, the party leader, argues that those with six-figure and even seven-figure incomes should contribute more through higher social contributions and taxes. An inheritance tax is also a necessary component, according to Schaper.
Her main emphasis is on the contribution assessment limits, which exempt contributions for pension, unemployment, health, and long-term care insurance for incomes above 96,600 euros and 66,150 euros respectively. Schaper asserts that this doesn't place undue financial pressure on anyone but rather benefits society as a whole.
In 2022, Saxony had 499 income millionaires, a number that has been steadily increasing in recent years. This information was obtained by The Left from the state parliament after a request was made, although complete data is only available from the finance ministry up to this current year. In 2014, the number was less than half as large (230). The highest income earner in Saxony made almost 24 million euros, with their total income contributing around 1.2 billion euros to the region.
The Left party criticizes that only a fraction of million-dollar incomes are being audited by the tax administration, with the audit rate never surpassing 30 percent since 2014. In 2021, the tax administration only considered only four percent of high-income earners, and in 2022, it was just one percent. Such low numbers of audits are deemed unacceptable, especially given these substantial incomes, argues The Left.
Compared to the approximately two million taxable persons in Saxony, the number of income millionaires is relatively small. In comparison to other federal states, there are fewer top earners in the Free State. The most income millionaires live in Bavaria, followed by North Rhine-Westphalia, and Baden-Württemberg, while Saxony ranks lower. Nationwide, there were 29,345 income millionaires in 2020.
- The Saxony's Left party is advocating for an increase in social contributions and taxes for top earners, a move aimed at funding social systems and creating a fairer financial distribution.
- In light of growing concerns over underexplored million-dollar incomes, The Left party criticizes the low audit rate of high-income earners in Saxony, calling for greater scrutiny of these substantial incomes to ensure fair taxation and viable revenue for social systems.
