Pension reform: economics calls for abolition of pensions at 63 | EUROtoday

The head of the economists, Monika Schnitzer, has reiterated her demand to extend the retirement age and abolish the pension at 63. “Germany should increase the retirement age according to the rules – two thirds of the additional life span goes into work and a third into retirement. The new government should abolish the pension without deductions after 45 years of contributions (pension at 63),” mentioned Schnitzer to the “Rheinische Post”. She helps the improper individuals. “Employees who are heavily burdened, such as roofers or nurses, often do not reach 45 years of contributions.”

Monika Schnitzer additionally warned in regards to the SPD’s pension plans. “The SPD always emphasizes that it wants to keep pensions stable. In fact, she wants to keep the pension increase stable. But this cannot be paid for in an aging society. The pension contribution will then rise from 18.6 percent now to over 21 percent in 2035 and to over 26 percent in 2060.” The Munich economist warns: “Social contributions are already at 41 percent in total, they have to come down.”

Schnitzer advocates increasing the inheritance tax

In addition, Schnitzer requires the growth of inheritance tax. “The state should substantially include inheritance from companies in the inheritance tax. “It is economically incomprehensible that this form of passing on wealth remains excluded from taxation,” she mentioned. “Company heirs should also pay inheritance tax, that would only be fair. So far they are exempt if they get jobs. But that hinders their freedom of action to become more efficient.”

Schnitzer, nonetheless, rejected a billionaire tax. “This is essentially a wealth tax on the super-rich and is certainly popular with some during the election campaign,” she continued. “But this involves a lot of administrative effort; half of the income goes to administration. It would be better to increase the inheritance tax,” Schnitzer continued.

The Left Party, for instance, is looking for a billionaire tax. Green Party lead candidate Robert Habeck (Greens) additionally proposed such a tax round ten days in the past.