The distribution of wealth in germany

The question of the fair distribution of wealth concerns many people around the world. In Germany, too, there is a growing debate about the fact that the rich are getting richer and richer while the poor are getting poorer and poorer. A well-known saying is: “The rich pay, the poor get”. But is this really true?

To answer this question, it is important to first look at the current situation in Germany. How big is the gap between rich and poor really and why is it still growing?? At the same time, the different perspectives on the question of fair distribution must also be considered. Depending on political attitudes, education and income, people have different ideas about what is fair and what is not.

In this series of articles, we would like to take a detailed look at the topic and illuminate the various arguments and points of view. In doing so, we will also look at the role of government and business in relation to the distribution of wealth and raise the question of what solutions there might be to achieve a more equitable distribution.

We invite you to join us on an exciting and informative journey through the complex topic of wealth distribution in Germany.

Who bears the brunt of taxes in Germany?

According to statistics, it is mainly employees who pay the majority of taxes in Germany. In 2019, about 32% of tax revenues were from workers and pensioners. Unfortunately, there are still too many employees who, despite having a full-time job, do not earn enough to be able to live really well.

The distribution of wealth in germany

On the other hand, there are also many rich people in Germany who pay comparatively little tax and thus benefit from the state. This injustice is also repeatedly highlighted in the debate on inheritance tax. Many citizens are calling for a fairer distribution of burdens and higher taxes for the wealthy to create social balance.

  • The largest income groups in Germany and their share of tax revenues:
    1. Employees: 32
    2. Self-employed: 18
    3. Pensioners: 15%
    4. Income from capital and assets: 13

There are therefore discussions about reforming tax laws to achieve a more equitable distribution of the burden. One possibility, for example, would be to make income and wealth taxes more progressive and allow higher rates for wealthy citizens.

In the interest of a stable society where everyone has a chance, there needs to be a fair distribution of taxes and burdens. This is the only way to ensure that all citizens in Germany have equal rights and the opportunity to participate in social life.

The distribution of wealth in germany

Social benefits for low-income people

In Germany, about 20% of the population is classified as at risk of poverty. These people often don’t have jobs or earn very little money, and therefore have little opportunity to claim social benefits. For this reason, Germany has various social benefits for low-income people, such as Hartz-IV, housing allowance, or child allowance.

These social benefits are funded by tax dollars paid by citizens, including the wealthy. It is a responsibility of the state to support the financially vulnerable and provide them with a dignified life. Supporting low-income people can also stabilize society as a whole.

  • Hartz-IV: Unemployment benefit II serves as a means of subsistence for persons and families without income or with low incomes.
  • Housing benefit: Low-income households that have to pay rent or charges for their own properties receive a subsidy from the state.
  • Child supplement: low-income families who do not earn enough despite working are supported by the child supplement.

It is important that the financially vulnerable are not left alone and that society works together to ensure that everyone can live a decent life.

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