Robert Habeck proposed using capital gains to help fund health insurance, aiming for a fairer contribution system. Critics, including CSU leader Markus Söder and FDP representatives, argue this targets savings and could burden the middle class. Supporters argue it includes protections for small savers. The Greens emphasize the need for wealthier individuals to contribute more to sustain affordable health insurance amidst rising rates. Concerns about potential increases in health insurance contributions are also noted.
Habeck’s Proposal for Capital Gains in Health Insurance Funding
In a recent statement, Green Chancellor candidate Robert Habeck proposed the inclusion of capital income as a source of funding for health insurance companies. This suggestion, presented in the ARD program “Report from Berlin,” has sparked significant debate and criticism.
Criticism of the Green Initiative
Habeck expressed his intention to use income derived from capital gains to contribute to the financing of statutory health insurance. “We aim to expand the contribution base,” he stated during the program. He pointed out that capital gains are currently exempt from social security contributions, resulting in a heavier tax burden on wages. “Our aim is to ensure these income sources contribute to social security,” he remarked, advocating for a more equitable system.
Currently, capital gains do not incur social contributions, although a withholding tax of 25 percent is applied to income that surpasses the exemption threshold of 1,000 euros. As the federal election approaches, the Greens are intensifying their rhetoric while emphasizing their desire for coalition viability.
Markus Söder, the CSU party leader, quickly criticized the proposal, stating, “The Greens are not just pushing for higher taxes; they are also targeting people’s savings and returns. We firmly oppose this. Additional taxes on already taxed money should not be imposed.” The Association of Capital Investors (SdK) echoed this sentiment, warning that the proposal could disproportionately affect the middle class, as mandatory insured individuals might have to pay contributions on capital gains up to the contribution assessment ceiling. SdK chairman Daniel Bauer highlighted that wealthier individuals would not be impacted due to this ceiling.
Additionally, FDP parliamentary vice-chairman Christoph Meyer voiced his disapproval, arguing that those who save or invest their already taxed income should not be penalized for their financial responsibility. He criticized Habeck’s proposal as revealing the Greens’ economic shortsightedness. FDP Secretary General Marco Buschmann accused Habeck of attempting to “plunder” capital investors.
In response to the backlash, Felix Banaszak, the Green party leader, clarified that the proposal includes “generous exemption limits” to protect small savers, indicating that only capital gains exceeding a certain threshold would be subject to contributions. However, he did not specify the threshold. Green campaign manager Andreas Audretsch reassured that “normal savers will not face any changes,” while emphasizing that those earning primarily from interest or dividends should also contribute to maintain affordable health insurance for all.
Jens Baas, head of the Techniker Krankenkasse, had previously warned of a potential significant increase in health insurance contributions, predicting that without political action, rates could escalate to 20 percent in this decade. Earlier this year, the majority of the 94 statutory health insurance companies raised their additional contribution rates, which now average 2.91 percent on assessable income, in addition to the general rate of 14.6 percent on gross wages.