Financial expert calls for an anchored limit for social security contributions and income tax relief

Financial expert calls for an anchored limit for social security contributions and income tax relief

According to a report from www.tagesschau.de, Union parliamentary group vice-president Jens Spahn is calling for a limit for social security contributions and income tax relief anchored in the Basic Law. He emphasizes that economic growth should be the top priority as it is key to securing prosperity, financing pensions and care and dealing with the aging population.

According to Spahn, the high burden of taxes and contributions for employees is a major problem as it hinders growth and puts a burden on both employees and employers. He calls for a “brake” on social security contributions and suggests anchoring these in the Basic Law in order to ensure a permanent net guarantee for salaries.

Spahn also calls for income tax relief and emphasizes that performance must be rewarded more. He suggests that overtime should be tax-free and that the top tax rate should only apply from an annual salary of 80,000 euros.

In order to offset the financial impact of the tax and contribution cuts, Spahn argues that they would indirectly lead to more revenue. According to him, every percent more economic growth would generate billions in additional tax revenue. He also advocates a stop to bureaucracy in the European Union in order to stimulate the economy.

Spahn also advocates a change of course in migration policy and calls for a pause in uncontrolled asylum migration. He emphasizes the need for a clear signal at the EU's external borders and strengthening border protection in order to reduce the number of new asylum seekers.

Spahn's proposed measures could potentially have positive effects on the market and the financial industry. Reducing social security contributions and income taxes can reduce the financial burden on employees and employers and thus support growth. Increasing economic growth would lead to higher tax revenues, which in turn could help finance pensions and care. A stop in bureaucracy could stimulate the economy and relieve pressure on companies.

However, it is important to note that these potential impacts in the market and financial industry depend on many factors. The implementation of the proposed measures as well as political and economic conditions could influence the results. In-depth analysis and comprehensive calculations would be required to make accurate forecasts.