Look How Merkel's Austerity Budget Will Raise Taxes and Slam Workers


Criticism from all sides is straining Merkel‘s government, as millions of German workers realise they’ll have to pay more taxes.

The coalition is facing pressure about their new health reform that was agreed on yesterday after months of negociations, as the German magazine Der Spiegel reported

With the package, the health care contribution rate has gone up to 15.5%, from 14.9%. That means, according to the German taxpayer organisation, people with low and moderate income will have to pay more. Citizens with higher income, however, will actually profit from the health care reform, since they can deduct their contribution from their taxes.

That’s not all, says the organisation: because of this year’s tax reform, singles and people without children will face higher taxes as well.

And then there’s the austerity package: German economist Wolfgang Wiegard said in Der Spiegel that the government is trying to conceal tax raises by adding new ones,  like the tax on financial transactions. He predicts serious complaints.  “Nobody wants a tax on financial transactions except France and Germany,” he said.

Merkel is not going to get any summer rest, it seems. SPD opposition leader Steinmeier has already demanded the resignation of Health minister Roesler.

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