Opinion
The rich have been spared for too long, they need to be taxed more harshly
A tax on the rich is needed for the 250 German billionaires. Their lives are fundamentally different from those of normal people who actually pay more taxes.
It is an astonishing paradox of our time: While billionaires pay ever lower taxes in many countries, the broader middle class bears a growing share of the tax burden.
This imbalance is particularly noticeable in Germany. In our country, the tax and contribution rates for the rich are now only half as high as for the average citizen.
The picture was completely different 30 years ago – back then the effective tax rate for the super-rich was around 60 percent. Today it is less than 30 percent. The average person pays a peak of 42 percent, plus high social security contributions.
Introducing a tax on the rich could close the gaps in the state budget. Instead, it is better to save money on projects such as basic child welfare and the Deutschlandticket.
This is not only amoral, it endangers democracy.
Tax on the rich must come
At the G20 summit in Rio de Janeiro, Brazil proposed correcting this discrepancy. The participants signed a declaration of intent: They would work together to effectively tax very wealthy people.
These kinds of advances are not new. It would be a surprise that something fundamental would change now. Some absurd ideas and fears have taken root in many minds.
Critics warn that higher taxes on the rich could discourage investment and slow economic growth. But do lower taxes for the rich actually lead to more investment and jobs?
In fact, a large part of their free resources goes into outlandish and anti-climate hobbies and gadgets. Here a private flight, there a trip on a mega yacht through the Caribbean. Selling low taxes for the rich as an advantage to the average person is perfidious – and dangerous.
It’s about money and morale
It’s not just about the amount of taxes, but also about their effectiveness and transparency. Comprehensive tax reform that closes tax loopholes and combats international tax avoidance strategies could ensure that the wealthy pay their fair share.
The design of such a tax on the rich must be as brutal as possible – it does not have to be socially acceptable.
Ultimately, the question of taxation is also a moral one. In a society that values equality of opportunity and justice and even makes them the basis of its system, measures must be taken to ensure that wealth is distributed sustainably and fairly.
Smart and fair tax policy could be the key here – not only to reduce inequality, but also to strengthen social cohesion and trust in democratic institutions.
Source: Stern
