Social security restructuring advocated by craft industry for necessary changes
**Berlin — A revised approach to funding mothers' pensions, long-term care insurance, and family members' co-insurance in health insurance is being advocated by Hans Peter Wollseifer, president of the German Crafts Association, according to statements made to the "Rheinische Post".
In light of demographic changes, Wollseifer suggests that these social security systems should transition from the current contribution-based funding to being financed through federal tax revenues. He asserts that the traditional pension, unemployment, and health insurance systems cannot continue in their current form due to demographic shifts.
To fund this transition, Wollseifer proposes closing tax loopholes and more aggressively taxing digital services in Germany. This would prevent large digital companies from generating billions in revenue domestically without paying corresponding taxes.
The current approaches to mothers' pensions, long-term care insurance, and family members' co-insurance in health insurance involve funding a blend of social security contributions and government subsidies. Potential strategies for financing these programs include increasing contribution rates, introducing new pension benefits, tax incentives, and private retirement savings plans for mothers' pensions; adjusting premiums, government subsidies, and private supplemental insurance for long-term care insurance; and premium adjustments, flexible contribution schemes, and tax credits for family members' co-insurance in health insurance.
The specific proposals of Hans Peter Wollseifer are not detailed in the provided information, but a general shift towards tax-funded social welfare programs is proposed to ensure their future sustainability.
Other businesses, such as digital companies, might be subject to more aggressive taxation to finance the transition of social security systems that support mothers' pensions, long-term care insurance, and family members' co-insurance in health insurance. This could involve altering the current approach, which is a blend of social security contributions and government subsidies, towards one that is primarily funded through federal tax revenues.
