Germany set to tax young
Germany is proposing to levy extra taxes on the young to pay for the costs of the country’s growing numbers of old people, under government plans for a « demographic reserve » levy.
Angela Merkel’s Christian Democrats have drafted proposals that, if law, would require all those over 25 to pay a proportion of their income to cushion Germany against a looming population crisis.
The German Chancellor’s ruling party is seeking extra sources of revenue to pay for soaring pensions and bills for social care costs as Germany’s « baby boomer » generation ages amid a decline in the birth rate.
Because of a slump in Germany’s population, as more ageing Germans retire there are fewer young workers to replace them as taxpayers to fund generous welfare and pension arrangements.
« We have to consider the time after 2030 when the baby boomers of the ’50s and ’60s are retired and costing us more in health and care costs, » said Gunter Krings, who drafted the Christian Democrat position paper.
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