18 July 2023, ArirangTV NEWs GEN, “Germany’s Childless Tax”

https://www.youtube.com/watch?v=U3BIsXi1hN4&pp=ygUMYXJpcmFuZyBuZXdz

230718_ArirangTV_NewsGen_Childless_Tax

Hello. Thank you for having me.

{1} Did you know about German's childlessness tax? Tell us what this exactly is and how it works?

https://www.dw.com/en/german-minister-says-childless-people-should-pay-more-tax/a-46229483

The aging population and the retirement of post-war baby boomers in Germany have become a growing concern, placing a significant burden on the country's health and social systems.

In 2018, German Health Minister Jens Spahn, of the conservative Christian Democratic Union (CDU), expressed his support for this approach. He also acknowledged the possibility of increasing the contribution further.

https://m.kmib.co.kr/view_amp.asp?arcid=0924309475

According to the German Federal Ministry of Health, the Christian Democratic Union, the Christian Social Union (CDU/CSU) and the Social Democratic Party reached an agreement to reform the long-term care insurance system for the elderly in 2021.

Starting from 2022, they introduced differentiated costs based on the number of children. Individuals without children who are over 23 years old are now required to contribute an additional 0.35% of their pre-tax income as long-term care insurance premiums.

This percentage was previously at 0.1%, but it has been increased by 0.25 percentage points.

{2} What do you think about this tax system and what's the general public, specifically young Germans' perception on this?

Personally I think this kind of policies are making people more negative about having baby. Regarding this matter, there are critical views among the public. All of my acquaintance who has answered me on Instagram poll has opinion like “it is totally unfair and discriminative. The tax should be calculated according to how rich people are not to the number of children they have.

German Health Minister Jens Spahn emphasized the need for the government to establish a fair system that benefits all generations. He expressed concerns about the diminishing number of young people in the coming years and the potential for them to evade the financial burden.

On the other hand, Labor Minister Heil, representing the center-left Social Democrats (SPD), suggested an alternative approach to support families. He proposed exploring the possibility of increasing pension insurance contributions for high-income individuals not for those who don’t have baby as a means to strengthen the financial stability of the pension insurance system.

These statements reflect the ongoing debate surrounding the best course of action for addressing the issue at hand. As policymakers grapple with finding a balanced solution, it is essential to consider the perspectives and implications of different approaches.

{3} Do you think this type of tax encourages higher birth rates?

When contemplating the idea of starting a family, many individuals encounter significant financial obstacles. These obstacles encompass various aspects, including housing expenses and the costs associated with education.