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Higher taxes in retirement: pensioners pay more taxes – “outrage”

2024-02-18T20:50:42.182Z

Highlights: Sahra Wagenknecht is calling for a correction to the statutory pension and taxes for pensioners. The Finance Ministry's response shows that the total taxes and social security contributions for pensioner have increased significantly. “The state is digging ever deeper into older people’s already thin wallets,” the MP criticized the government. The total of over 124 billion euros in taxes and duties is 7.8 billion euros higher than last year. Within four years it had increased by 22 percent.



As of: February 18, 2024, 9:47 p.m

By: Mark Stoffers

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Millions of retirees pay heavily into social security funds.

Sahra Wagenknecht is calling for a correction to the statutory pension and taxes for pensioners.

Berlin – Pensions continue to be a major point of discussion between the traffic light coalition and many representatives of the opposition.

Now Sahra Wagenknecht, leader of the newly founded BSW party, also joined the debate and expressed a clear demand to relieve the burden on the millions of pensioners in Germany.

Pensioners have to pay significantly more taxes and social security contributions

The basis for their demand is a request from members of the Bundestag to the government, which the

German Press Agency (dpa)

has received.

The Finance Ministry's response shows that, according to federal government data, the total taxes and social security contributions for pensioners have increased significantly and are expected to reach a good 124 billion euros this year.

For 2024, the ministry refers to estimates and simulation calculations based on data from previous years.

Accordingly, 54.3 billion euros in contributions for statutory health insurance and 11.5 billion euros for nursing care insurance will be due in the current year.

For comparison: in 2020 there were 44.3 billion euros for health insurance and 8.5 billion euros for nursing care insurance.

According to the ministry, the tax amount due will increase from 48.8 billion euros in 2020 to 58.6 billion euros in 2024.

More taxes and contributions for pensioners: increase in nursing care contributions and health insurance amounts

The rising social security contributions for pensioners are primarily explained by increases in the nursing care contribution and the additional contribution for health insurance.

In addition, the number of pensioners is growing.

The increasing tax amounts for pensioners were laid out in a reform in 2004 in this way: gradually an ever larger part of the pension is subject to tax, while the contributions during the working phase are made tax-free.

Wagenknecht takes this fact as an opportunity to openly criticize the federal government.

The chairwoman of the Alliance party Sahra Wagenknecht is therefore calling for an end to the burden and tax exemption for small and medium-sized pensions.

Criticism of taxes and duties for pensioners: “The state is digging ever deeper into the already narrow wallet”

Wagenknecht therefore believes that a change of direction is unavoidable.

“The state is digging ever deeper into older people’s already thin wallets,” the MP criticized the government.

The total of over 124 billion euros in taxes and duties is 7.8 billion euros higher than last year.

Within four years it had increased by 22 percent. 

Party leader Sahra Wagenknecht speaks during Political Ash Wednesday at the Alliance Sahra Wagenknecht party event.

© Lukas Barth/dpa

“The taxes and contributions for pensioners are now higher than the entire federal subsidy for pensions - an outrage,” said Wagenknecht.

“The burden of taxes and contributions must be reduced.” Health and nursing care insurance contributions have risen too much, and the abolition of pension taxation must be on the agenda.

“This reform was a fatal mistake,” said Wagenknecht.

“We need tax exemption for all statutory pensions at least up to 2000 euros.”

More taxes and contributions for pensioners: Labor Minister Heil announces pension increase and pension package

Only time will tell whether this criticism will be met with open ears by Labor Minister Hubertus Heil.

What is certain is that Heil recently announced a new pension package.

According to his statement, the SPD politician and Finance Minister Christian Lindner (FDP) are already “very far along” with the draft for Pension Package II and will “present the new pension package in a few weeks” in order to “secure the pension level permanently”.

Because without a reform, pensions would “fall significantly” in the coming years.

In addition, the Minister of Labor made an initial forecast for pension increases in July 2024.

He told the newspapers of the

Funke media group

that he was “confident” that the pension increase this year could be higher than inflation.

He also made a clear announcement regarding an increase in the retirement age: “With us there will be no further increase in the statutory retirement age.” In his opinion, “a pension at 69 or 70” would be for many hard-working people, for example in care and logistics, “also a pension cut”.

(

with material from dpa

)

Source: merkur

All news articles on 2024-02-18

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