(de-news.net) – The General Secretary of the Christian Democratic Union (CDU), Carsten Linnemann, has articulated firm reservations about the SPD’s proposal to stabilize statutory health insurance finances by extending contributions to capital and rental income. In his assessment, such an approach would undermine planning security for households that have been encouraged to build private retirement provisions and would place a disproportionate burden on small and medium-sized savers. Linnemann framed his criticism in contrast to statements by SPD leader Lars Klingbeil, who has argued that incorporating capital income into health care financing is justified on grounds of fairness. From Linnemann’s perspective, however, the proposal risks weakening confidence in long-term savings decisions that are actively promoted as part of individual retirement planning.
As an alternative, Linnemann called for a clearer separation between insurance-based financing and broader social policy objectives. He argued that so-called non-insurance benefits should be removed from the system, pointing in particular to the publicly financed coverage of recipients of basic income support. According to his account, this arrangement imposes annual costs amounting to double-digit billions on contributors, despite the absence of corresponding payments by those beneficiaries. Linnemann also sought to limit the political impact of recent debates on welfare-state reform involving figures close to the CDU. While acknowledging that the use of polarizing terminology had temporarily intensified the tone of the discussion, he maintained that such episodes had not produced lasting electoral consequences. In his view, voter decisions are shaped primarily by economic performance, and although there have been signs of improvement, including fuller order books and a rise in new business formation, he emphasized that overall economic conditions remain strained.
In a separate but related policy debate, Federal Minister for Economic Affairs Katherina Reiche (CDU) has pressed for faster tax relief for both companies and employees. She argued that bringing forward the planned reduction in the corporate tax rate—currently scheduled to take effect in 2028—could generate earlier positive effects for investment and growth. Reiche also reiterated that discussions with the SPD are ongoing regarding whether income tax reforms could be implemented ahead of the existing timetable. Central to her argument is the need to reduce the tax burden on labor as quickly as possible, as she views a more attractive labor market as a key driver of higher productivity. In turn, increased employment and productivity would ease financial pressure on the social security system. Reiche concluded that accelerating reforms in corporate and income taxation should be a shared objective of the governing coalition, which has committed in its coalition agreement to lowering income taxes for low- and middle-income earners by the middle of the current legislative period.
