CDU General Secretary Carsten Linnemann is calling for further changes to Germany’s social safety net, even after the planned transition from the current “Bürgergeld” system to a new “Grundsicherung” in March. Linnemann argues that the current system allows for the “legal appropriation” of social benefits and requires additional legislative action.
Further Reforms Proposed
Linnemann specifically aims to overhaul the rules regarding earnings supplements, or “Aufstocken,” where individuals work part-time and receive government assistance to reach a minimum income level. He stated, “There are people who work five to ten hours a week and supplement it with Bürgergeld.”
Linnemann proposes a system where income from even a few hours of work would be fully deducted from Bürgergeld benefits. He believes this would incentivize more substantial employment, stating, “First, those who work more should keep more.”
Clash with SPD on Funding
The CDU General Secretary also rejected proposals from the Social Democratic Party (SPD) to introduce new social contributions on rental and capital income. Linnemann argued that such a move would undermine financial planning, as two-thirds of Germans already privately save for retirement and pay taxes on those savings.
He further suggested that, instead of new taxes, the government should work towards reducing social contributions to around 40 percent to stabilize the system. Linnemann also advocated for income tax cuts, specifically raising the threshold for the top tax rate from 68,000 euros to 80,000 euros in annual gross income.
What Happens Next?
Linnemann expressed a willingness to discuss a comprehensive reform package with the SPD. However, given the differing viewpoints on funding and the scope of benefits, negotiations could prove challenging. The upcoming Grundsicherung will be followed by further legislative efforts to adjust earnings rules and address concerns about the perceived misuse of the system. A compromise may involve adjustments to the earnings rules alongside limited tax adjustments, or a stalemate could result in the current system remaining largely unchanged.
Frequently Asked Questions
What specific changes does Linnemann want to produce to the Bürgergeld system?
Linnemann wants to change the rules regarding how earned income affects Bürgergeld payments, particularly for those working only a few hours per week. He also wants further legislative action after the transition to the Grundsicherung in March.
What is Linnemann’s position on new social taxes proposed by the SPD?
Linnemann opposes the SPD’s proposals for new social taxes on rental and capital income, arguing they would discourage saving and undermine financial security.
What does Linnemann propose regarding income tax?
Linnemann proposes raising the threshold for the top income tax rate from 68,000 euros to 80,000 euros in annual gross income.
As Germany prepares for a new social welfare system, how might these proposed changes impact the balance between providing support and encouraging employment?
