(de-news.net) – The CDU Economic Council has advocated the adoption of a comprehensive ‘Plan for Employees,’ combining substantial tax relief with a firm cap on social security contributions to be achieved through the targeted removal of selected benefits. In media statements, the secretary general of the business association, which represents more than 13,000 member companies, framed persistently elevated unemployment—remaining above three million—as an unmistakable indicator of structural strain. According to this assessment, the figures underscore the urgency for policymakers to act decisively in order to renew the promise of social mobility and to reactivate growth dynamics that are seen as constrained under current conditions.
Plan calls for abolishing Solidarity Surcharge
At the core of the proposed agenda is a broad recalibration of the tax system aimed at easing the burden on both employees and firms. The measures outlined include a marked increase in the basic tax allowance, a postponement of the point at which the top income tax rate applies, and the systematic introduction of automatic inflation indexation within personal income taxation to prevent so-called bracket creep. In addition, the plan calls for the complete abolition of the Solidarity Surcharge, extending this step explicitly to high-income earners, alongside a reduction of the corporate tax rate to 25 percent. These tax reforms are presented as inseparable from parallel efforts to stabilize nonwage labor costs, with entitlement reductions identified as the primary mechanism for preventing further increases in social security contributions. Within this framework, unemployment benefits would generally be limited to a duration of one year, while several pension-related provisions—such as the mother’s pension, early retirement at age 63, and the basic pension—would be abolished to remove what are characterized as group-specific advantages. Moreover, the statutory retirement age would be linked to life expectancy and increased beyond the currently legislated threshold of 67.
Beyond pensions and taxation, the agenda envisages a reassessment of statutory health insurance benefits, with dental treatments to be excluded on the grounds that they can be readily covered through private insurance arrangements. Accident insurance coverage would likewise be narrowed by excluding incidents occurring during commutes. Complementing these social policy proposals, the Economic Council also endorses broader structural measures, including initiatives to lower energy costs across the economy, facilitate access to home ownership—such as through the abolition of the real estate transfer tax—and significantly reduce administrative and bureaucratic burdens viewed as inhibiting investment and employment growth.
