Increase in Social Security Contributions Proposed for High-Income Earners via Mandate - High-income earners face demands to increase their social contributions from the leftist group.
In Germany's Saxony, a push for higher social contributions from high earners has emerged as the Left party calls for increased taxation on those with six-figure incomes and millionaires. According to party and faction leader Susanne Schaper, this move is necessary to fund social systems equitably.
Schaper emphasized that not only should top earners contribute more, but an inheritance tax is also essential. She assured that such measures would not serve to impoverish anyone but rather enrich the entire nation by promoting fairness, long-term investments in infrastructure, and preserving the commonwealth.
The call for increased contribution comes as the number of income millionaires in Saxony has seen a substantial increase from 230 in 2014 to 499 in 2022, with the highest income earner roughly earning 24 million euros. The state parliament provided the information on income millionaires to The Left's chairwoman, with complete data available only up to 2022 from the finance ministry.
Throughout the years, the number of income millionaires has steadily increased in Saxony. The Left has criticized the tax administration's audit rates on such high incomes, which have never surpassed 30% since 2014. In 2021 and 2022, the tax administration only scrutinized less than one percent of affected individuals. This, according to The Left, is unacceptable, especially considering the vast sums of money involved.
The increase in income millionaires in Saxony is part of a broader trend of rising economic inequality across Germany. A recent study showed that the median salary of top managers in Germany reached 4.4 million euros in 2024, a 21% increase since 2019, while average workers' wages barely rose by 0.7% in the same period[1]. This stark income disparity has stoked political demands for policy interventions to address social justice concerns.
The Left's proposal seeks to address this issue by curbing excessive wealth accumulation and funding social welfare measures through increased taxation on the highest incomes and more rigorous tax audits targeting the super-rich and top earners. This approach reflects a broader movement advocating taxing the super-rich, raising top tax rates, and promoting fair wages as means to combat economic polarization[1]. According to the data, Saxony houses relatively few top earners compared to other federal states, with Bavaria, North Rhine-Westphalia, and Baden-Württemberg hosting more income millionaires[1].
[1] Enrichment Data, Relevant Background Information: Income Disparity and the Need for Policy Interventions, Oxfam Recommendations.
- The Left party in Germany's Saxony, led by Susanne Schaper, is advocating for an increase in social contributions from high earners and millionaires, as part of a proposed employment policy and community policy, to equitably fund social systems and address income inequality.
- This employment policy and community policy proposal includes the implementation of a more rigorous tax audit system targeting the super-rich and top earners, aiming to redistribute wealth and combat economic polarization, as reflected in the Oxfam Recommendations on Income Disparity and the Need for Policy Interventions.
