Health insurance companies: Dispute over the Habeck plan for social security contributions on capital gains

Stock investors are to be involved in social security in Germany following a push by Green Party candidate Robert Habeck. In the future, your income from capital gains will also be used to finance statutory health insurance (GKV), for example. “Why should work be burdened more than income from capital gains?” said Habeck in the ARD program “Report from Berlin”. Almost six weeks before the federal election, there were prompt reactions – and not just positive ones.

The party leaders of the CSU and FDP accused Habeck of reaching into people’s pockets. The coalition partner SPD also rejected the Green Economics Minister’s proposal. The Investor Protection Association (SdK) warned of negative effects for the middle class. However, the Social Association of Germany (SoVD) welcomed Habeck’s statement as an idea for more justice.

TK boss fears further increase in contributions

Habeck announced that the Greens “would like to increase the contribution base.” He criticized the fact that capital gains have so far been exempt from social security contributions. Habeck had been asked about warnings from TK boss Jens Baas. The head of the Techniker Krankenkasse had predicted in the “Süddeutsche Zeitung” that without political intervention there would be a risk of an increase in premiums to 20 percent this decade.

The Taxpayers’ Association has calculated that in 2024 an average employee household in Germany will have paid 52.6 percent of its income to the state. This means that 47.4 cents are left over from one euro of earned income. 31.7 cents go to social security contributions, the rest to taxes and levies.

SPD, CSU and FDP: No intervention in citizens’ retirement provision

Health Minister Karl Lauterbach responded with a counterproposal. “Before we add contributions to the reserves for old age for those insured by statutory health insurance, we should involve those with private insurance in solidarity,” wrote the SPD politician on the platform with. That’s wrong.”

There was clear criticism from the CSU: “The Greens don’t just want higher taxes. Now they also want to get into people’s savings and their income,” said party leader Markus Söder to the German Press Agency. “We fundamentally reject that.” Nothing can be levied on money that has already been taxed.

FDP leader Christian Lindner warned of “the middle class in Germany being cashed in.” Habeck is also accepting a further deterioration in the competitiveness of Germany as a business location, Lindner told the newspapers of the Bavaria media group.

The designated FDP General Secretary Marco Buschmann calculated that this “big Habeck theft” could mean a six-figure reduction in income even for small savings rates. “I think that’s irresponsible.” SdK CEO Daniel Bauer told the newspapers of the Funke media group: “This would not affect millionaires and billionaires, since health insurance contributions are limited by the contribution assessment limit.”

Greens: “Generous allowances” are being considered

Green Party campaign manager Andreas Audretsch said: “It is unfair if a part-time single parent or a police officer contributes more to financing statutory health insurance than someone who earns a lot of money in stock trading.” It would also be good for companies if we keep the contribution rates as low as possible, he said.

Green Party leader Felix Banaszak emphasized that it was about more justice. “This is not about the small saver. Nothing will change for small savers.” “Very generous allowances” should ensure this. Banaszak did not give any numbers.

Unlike social contributions, in Germany capital gains are already taken into account when determining income tax. They are taxed according to capital gains tax at 25 percent plus solidarity surcharge – above an allowance of 1,000 euros.

High social security contributions – less inequality

The main focus of the federal election campaign so far has been how the economic downturn and various burdens in Germany could be contained. AfD leader Alice Weidel recently said that at least half of the “normal German employee” works for the state. In fact, there has been a controversial debate for years about how the billions in costs incurred by the social security systems in Germany should be distributed among employees and employers.

Researchers have found that in states with higher social spending, there is a small gap between the wealthy and people of average wealth. The current 2024 distribution report from the employer-related Institute of the German Economy (IW) shows the connection: The share of wealth held by the lower half of the population in terms of income is significantly higher in those states where “social protection spending per inhabitant” is also higher.

Social association: Small savings should remain free

In Germany, most of the 94 statutory health insurance companies had increased their additional contributions significantly at the beginning of the year to an average of 2.91 percent of the income subject to contributions. This is on top of the general rate of 14.6 percent of gross wages. Against this background, SoVD chairwoman Michaela Engelmeier gave Habeck support.

In order to finance the health insurance companies, other income than today would also have to be included, said Engelmeier to the Funke media group. “But: Care must be taken to ensure that income from small savings remains exempt from contributions.” In particular, the recent increase in additional contributions has placed a heavy burden on low and middle incomes, said Engelmeier. Cash contributions on capital gains, on the other hand, would be solidarity-based.

And what do the health insurance companies say?

The health insurance companies showed behavior. “The question of which types of income are used to finance statutory health insurance, which insures and provides for 90 percent of the population, requires a socio-political answer,” said Florian Lanz, spokesman for the National Association of Statutory Health Insurance Funds, to the dpa.

Social budget and social report BMF monthly report Interactive tool: Where is my income? Carsten Linnemann (CDU) on social issues and distribution IW distribution report