The Sahra Wagenknecht Alliance (BSW) Criticizes the Growing Tax Burden on Pensioners
Introduction
The BSW, led by Sahra Wagenknecht, has strongly condemned the increasing tax and contribution burden faced by pensioners in Germany. Despite Chancellor Olaf Scholz’s assurances of stable pensions, Wagenknecht asserts that these claims are a mockery for millions of retirees.
The Impact of Pension Taxation
According to Wagenknecht, the taxation of pensions has significantly eroded their real value, falling well below the already insufficient 48% level. The surge in tax and contribution liabilities has placed an excessive burden on pensioners.
BSW’s Demands
The BSW has put forward several demands to alleviate the financial strain on pensioners. These include:
- Exempting all pensions up to €2,000 from taxation by July 1st of this year.
- Abolishing the supplementary health insurance contribution.
Wagenknecht believes that these measures would not only benefit pensioners but also provide relief for employees and businesses.
Case Studies Illustrating the Increasing Tax Burden
The BSW’s parliamentary group has submitted a parliamentary inquiry that presents concrete examples of how the tax burden has increased over time. For instance:
- New pensioners receiving €2,000 per month pay €128 in monthly taxes, amounting to €1,537 annually.
- For pensioners who retired 20 years earlier, the tax burden on the same pension was only €40 per month.
Similar disparities are evident across various pension levels and retirement years.
Wagenknecht’s Previous Criticism
Wagenknecht has consistently criticized the taxation of pensions in Saxony, describing it as unjust. She has advocated for a pension tax brake to prevent a further increase in the number of pensioners subject to taxation.
Statistics on Pension Tax in Saxony and Germany
As of mid-2021, 407,000 pensioners in Saxony and approximately 6.3 million pensioners nationwide were affected by pension taxation. While some individuals were exempted from taxation due to the increase in the basic tax-free allowance in January 2024, the number of pensioners subject to taxation in Saxony rose again to 8,000 due to the July 1st tax adjustment.
Conclusion
The BSW’s criticism of the growing tax burden on pensioners is well-founded. The progressive taxation of pensions, coupled with the rising cost of living, has placed an undue financial burden on retirees. The BSW’s proposed measures to exempt small and medium-sized pensions from taxation and abolish the supplementary health insurance contribution would provide much-needed relief to millions of pensioners across Germany.
