Samstag, 15. August 2020

Options for debt repayment in Germany

ax increases to finance the deficit and repay the debt must be viewed with caution.
More work has to be done according to the cost recovery principle and the subsidies in the social insurance sector have to be cut, since the tax funds are no longer available.

This means that the health insurance contribution must be increased by 1% in order to be able to forego the federal health insurance subsidy of 14 billion euros. amounts. 20Euro.

The general federal pension insurance subsidy of 44.6 billion euros must be reduced. the contribution rate must be increased by 2 percentage points to 21%


The solidarity surcharge cannot be abolished.
Whether a one-off property tax of 10% is possible for assets of 500,000 euros or more depends on the extent of the disaster.

Furthermore, it must be checked whether the cost recovery principle should be used outside of social security. But I think it's just an emergency solution.
That could be a car toll to finance the roads.
At the state level, tuition fees and school books have to be bought again
Day care fees increase.

A measure that goes against our principle of long-term economic growth theory and is therefore only considered by Germany if interest rates rise sharply is a one-time 5% property tax with an allowance of 500,000 euros.

The other European countries with national debts of over 100% of GDP should do that. The Maastricht criteria of 60% of GDP as the maximum of total debt will otherwise only be reached again in decades, if at all, if they do not go bankrupt.

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