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Germany Today

German news in English

Saturday, January 18, 2025

Habeck's Tax Plan Sparks Debate

Published: 2025-01-15

German Economy Minister Robert Habeck has proposed a controversial plan to stabilize the country’s healthcare system by taxing capital gains.

The idea, part of the Green Party’s platform, aims to broaden the funding base for public health insurance.

Habeck argues that taxing capital income, like dividends and stock profits, would promote fairness by reducing the burden on wages.

Critics, including the CSU’s Markus Söder, have labeled the proposal an "attack on savers," warning it could shrink incomes for many.

The plan has also faced backlash for its potential administrative complexity and unclear implementation timeline.

While supporters see it as a step toward solidarity, opponents question its feasibility and fairness.