Low‑income earners and socially vulnerable people in Germany receive, over the course of a lifetime, far more in social and public benefits than they ever contribute in taxes and social security contributions. According to data from the Institute for German Economic Research (IW) cited by “Bild am Sonntag”, individuals in the country’s poorest 25 % receive an average of about €1.08 million in benefits. These benefits include pensions, health and nursing care, housing subsidies, basic income support (Bürgergeld), and costs associated with schooling.
In the same group, the total amount of taxes paid – comprising income tax and value‑added tax – plus social contributions averages only around €300 000 over a lifetime.
In contrast, those in the richest 25 % of earners pay an average of €2 million in taxes and social contributions across their lifetime, but receive only about €720 000 in benefits, the paper reports.
IW social‑state expert Martin Beznoska told “Bild am Sonntag” that Germany’s tax and social system has a high degree of redistribution. “People with little or no income benefit significantly from social and other public benefits” he said. “The German social state is, in principle, fair. It definitely helps the weak and also imposes a substantial burden on the strong. There is therefore no reason to pursue further redistribution”.
Beznoska welcomed the latest findings of the Social State Commission, saying, “The proposals move in the right direction”. He added that the social state’s goal should be to lift as many people as possible into a position where they can live from their own work. “A strong education system and improved employment incentives through taxes and social benefits are essential to achieve this”.