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It’s a sweeping “fuck you” towards the working class
Just like everything he does
No, the middle class tax reductions are financed with tax increases for high earners, not VAT increases that hit working class people harder.
That doesn’t change the fact that it still doesn’t affect the super-rich, who are trying to avoid paying their fair share: These people deliberately generate no taxable earned income.
“The working rich” already pay high taxes, which are now being raised just a little bit more.
So, when we look at the working population, it ultimately amounts to “robbing Peter to pay Paul.”
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The reforms don’t include a tax on earnings from capital. But that doesn’t mean that they negatively affect the working class. What’s the evidence doe that claim?
The changes to the taxes are minimal. I’m talking about how they are going to fuck up or social policies and our healthcare system. Or how they claim that being able to hold people in temporary contracts for years will be good for the economy.
The 4-year period of temporary contracts affects any employee, not just working class. Which changes to the social policies or healthcare system disproportionately affect the working class?
[…]affects any employee, not just working class[…]
Any employee is -by definition- working class.
How do you distinguish between “employees” and “working class”?
Okay, we meant the same things then, just different words <3
I thought you were referring to the social class (relatively limited wealth, lower occupational autonomy, and less influence over workplace).
Doesn’t this get countered by the health-care reform they introduced earlier this year, where they’re planning to introduce fees for people with kids who are 6 or older - and the family plans also require an increased fee (i.e. partner, whose taking care of the children for example, as part of the family insurance).
The 600€ per year that a family of 2 with 2 kids gets reduced by ~€200 per month for the partners & kids insurance.
https://www.bundesregierung.de/breg-de/aktuelles/gesundheitsreform-kabinett-2425916It does. The tax break also isnt a break but a pebble Not just that. Remember the retirement payments are going up massively and so much more
How much would be enough?
It might be “sweeping” but I don’t see anything with a big economic impact in there. The biggest impact is reduced labor rights.
Which seems to be the whole purpose of this government. To make things harder for everyone but the overly rich.
What would be a big economic impact? And which measure would have such an impact?
For example, they plan to reduce taxes by 10 billion. Their example is “family of four with 60k income gets a reduction of 600 in 2028”.
Germany’s GDP is 4470 billion. These 10 billion do not make any significant difference on the grand scale.
On the personal scale, for this family of four, its +50€ per month or +12,50€ per person per month. Also not much of a difference.
Inflation makes a bigger difference than that by 2028. Also, here I just account for the tax aspect. This family will face increased costs to pay for pensions and stuff and it might well be a net negative for them. I’ll wait for some professionals, like the DIW, to calculate that.
Okay, so you cannot give an example of what would be big. You also don’t give an example of what policy would have a big impact. That’s not constructive.
600 euro per household is not big. Would 1200 euro be big?
The €500 billion special fund for military spending had a big impact. For example, mortgage interest rates immediately jumped by 0,5%.
You cannot fix the German economy by fiddling with income taxes a little. There is also lots of things the German government cannot do (e.g., ECB interests rates, Volkswagen business strategy).
I believe the biggest lever they have is to build residential areas to reduce housing costs. That shows up in the reform package but only in vague terms:
- Wohnungsbau: Es wird eine Wohnungsbaugesellschaft für bezahlbares Wohnen (WBG) errichtet. Ziel ist es, vermehrt Wohnungen im bezahlbaren Preissegment zu bauen, wo der Wohnungsmarkt auf Dauer nicht ausreichend bezahlbaren Wohnraum bereitstellt. Die WBG soll den sozialen Wohnungsbau sowie den industriellen Hochlauf seriellen Bauens unterstützen und insbesondere in Regionen mit nachgewiesenem Wohnungsmangel tätig werden.
So they want to create some kind of association to build cheap housing. No timeline, no budget, no goals.
I fully agree with you. The housing market for low cost housing is failing and requires government intervention. Maybe the details of this measure will be published once the parliament works out the laws. Budget and timeline, sounds like that’s the parliament’s job to decide.
The previous government also tried to fix it and the one before as well. They all failed. So I don’t expect the Merz gang to achieve anything.
Well, government intervention is actually really complicated and that’s why lots of bureaucrats learn from past failures and try to figure out how to do better.
Read reform as gutting the social state and tearing up the social contract.
In which way?
Doctors notice on day 1, coupled with no longer allowing doctors notice obtained by phone.
Doubled limit to consecutive limited term employment.
For starters
dude die AU is jetzt ja mal ein scheiß Beispiel. Könntest ja rente und lohnfortzahlung und leistungskürzungen gepaart mit beitragssteigerungen nennen
So that’s gutting the social state and tearing up the social contract.
You Germans…
