The President of German skilled crafts, Jörg Dittrich, has issued a warning regarding the potential burden placed on successful individuals by planned tax reforms. Speaking to “Bild am Sonntag”, Dittrich emphasized that many businesses in his sector operate as personal enterprises, meaning that income tax acts simultaneously as the corporate tax. He argued that if tax policy suggests that high earners should be able to pay more, this disproportionately affects those who are primary contributors-the very individuals who drive commerce.
He expressed frustration that while discussions focus on corporate tax relief, over three-quarters of businesses within the skilled trades, which qualify as personal enterprises, are overlooked. According to Dittrich, these businesses are left unsupported and are expected to pay more.
Dittrich advocates for tax policies that are more closely linked to performance incentives. He frequently encounters the critique, voiced by both the self-employed and established professionals, that increased effort does not result in corresponding benefits. Therefore, any reform must signal that professional effort remains worthwhile. While acknowledging that increased tax contribution may be necessary for some, he insisted it must never apply to key contributors-the entrepreneurs who are responsible for making investments. He questioned how these individuals can invest if the government effectively removes their funds first.
Regarding the funding of social insurance systems, Dittrich also called for comprehensive structural reforms. He stated that labor is currently too heavily burdened by taxes and dues, which ultimately makes services unaffordable or causes them to cease entirely. This creates a “death spiral” where diminished services lead to lower social contributions.
Finally, in the debate over working hours, Dittrich favored increased flexibility. Although unions champion the eight-hour workday as a core principle, he noted that the desire for greater flexibility often originates with the employees themselves. He suggested that arrangements where employees work longer hours temporarily in exchange for more leisure time later should be allowed to be tested. This flexibility, he cautioned, must of course be balanced with safeguards against misuse, particularly because the economy is currently stagnant, requiring new paths and increased adaptability.