German politicians are at odds over a proposal to extend social insurance contributions to capital gains, a plan put forth by the Green party’s chancellor candidate, Robert Habeck. Jens Spahn, the deputy chairman of the Union’s parliamentary faction, strongly criticized the idea, stating that millions of savers and many businesses would be affected.
According to Spahn, who spoke to the Handelsblatt, Habeck’s proposal would stifle the willingness to work and ultimately suffocate the economy. He accused the Green party of having an insatiable appetite for money, saying it is not the right time to increase taxes and fees.
Habeck, on the other hand, advocates for making capital gains, such as dividends and interest, subject to social insurance contributions, in an effort to generate new revenue for the statutory health insurance system. The debate highlights the deep-seated differences in economic and fiscal policy between the major political parties in Germany, with the Union faction generally advocating for a more cautious approach to taxation and the Greens pushing for a more progressive tax system.