A lobby group, the “Federation of Taxpayers” is expressing concern over the lack of significant statements in parties’ programs for the federal election regarding the containment of the rise in social insurance contributions. “This will ultimately fall on the younger generation’s feet” said the federation’s president, Reiner Holznagel, in an interview with “Bild am Sonntag.”
The federation is already seeing the current system as unsustainable, describing it as a “generational bomb.” Holznagel is calling for further relief on income tax and the abolition of the solidarity surcharge. “We propose that the top tax rate only apply to incomes above 100,000 euros” he said. “The solidarity surcharge is a middle-class tax that must be abolished. This should be included in the 100-day program of the new federal government.”
At the same time, Holznagel criticized the SPD’s program, which proposes higher burdens for top earners. “If the SPD wants to tax higher incomes more heavily, the losers are undoubtedly small and medium-sized business owners. The top tax rate must under no circumstances be expanded” he said.