Germany's CDU Secretary-General Calls for Overhaul of Citizen's Allowance System

Germany - Ekhbary News Agency

Germany's CDU Secretary-General Calls for Overhaul of Citizen's Allowance System

Berlin – In a move sparking considerable debate surrounding Germany's social welfare policies, Carsten Linnemann, the Secretary-General of the Christian Democratic Union (CDU), has issued a strong call for fundamental reforms to the "Bürgergeld" system, the nation's primary social support program. These demands follow recent adjustments to the system, which Linnemann deems insufficient to address existing challenges, particularly the potential for "exploitation" through the "topping up" of supplementary income. He stated that the current situation permits "legal skimming" of social benefits.

Speaking to "Bild am Sonntag," Linnemann emphasized that the core objective of his proposals is to put an end to a "status quo in which social benefits are legally skimmed." He pointed out that the existing system, especially the rules for calculating supplementary income, creates perverse incentives that encourage working only a few hours per week while heavily relying on government benefits. "There are people who work five to ten hours a week and top up with Bürgergeld," the CDU Secretary-General stated. "This creates a system where social benefits are legally skimmed. That must stop."

Linnemann's proposals suggest a radical shift in how supplementary earnings are accounted for recipients of Bürgergeld. Instead of allowing individuals to retain a portion of their earned income while still receiving benefits, Linnemann advocates for a more stringent application of the "work more, earn more" principle. Under his proposal, any additional income earned by those working very few hours should be fully offset against their Bürgergeld. "Those who only work a few hours should have their income fully counted against the Citizen's Allowance," he suggested. "Only those who work more should keep more. Today, you can keep the first 100 Euros, and then 80 percent is counted – that incentivizes working little. We need to reverse that." This change aims to encourage recipients to seek full-time employment or increase their current working hours rather than relying on benefits to supplement their income.

Furthermore, Linnemann unequivocally rejected calls from certain parties, such as the Social Democratic Party (SPD), for new social levies on rental and capital income. He deemed such demands "wrong in principle," explaining that two-thirds of Germans already make private provisions for their retirement, paying solidarity surcharges (Soli) and withholding taxes (Abgeltungssteuer) on these savings as part of their retirement planning. "If you then also charge contributions on capital gains, you remove planning security and create political apathy, not trust," Linnemann argued.

Instead of introducing new levies, Linnemann urged policy measures aimed at stabilizing the social system in the long term. He proposed that policymakers gradually reduce contribution rates for social security back towards 40 percent, thereby easing the burden on individuals and businesses and ensuring the system's sustainability. He believes such steps would foster greater confidence in the social system and stimulate economic growth.

Additionally, Linnemann stressed the need for tangible reductions in income tax. In his "Bild am Sonntag" interview, he stated, "I think we need to talk to the SPD about a reform package." He proposed raising the income threshold at which the top tax rate (Spitzensteuersatz) applies. Currently, this rate kicks in at an annual gross income of €68,000, but Linnemann advocates for increasing this threshold to €80,000. "I am arguing that the top tax rate should not apply at €68,000 gross annual income, but only at €80,000. This way, we flatten the "middle-class bulge" and provide relief," he explained. This proposal aims to reduce the tax burden on the middle class, which Linnemann views as a key driver of the German economy, encouraging increased spending and investment.

These proposals come amidst Germany's preparation for the implementation of the new "Grundsicherung" system, set to replace "Bürgergeld" in March. While "Bürgergeld" represented an evolution from the previous "Hartz IV" system, Linnemann's proposed changes may signal a potential shift back towards stricter social welfare policies, raising questions about the balance between social support and individual responsibility.

Ekhbary News Agency