Wealthy individuals should face asset taxation, proposes Bartsch

In Germany, the net wealth of the ultra-rich has seen a significant increase, rising to a staggering 594.9 billion dollars by the end of July. This represents a substantial growth from 500.9 billion dollars in March 2019, according to recent reports. The club of the super-rich in Germany has also expanded, growing from 114 to 119 members since the same period in 2019.

These developments have not gone unnoticed, as the Left Party (Linkspartei) in the Bundestag has demanded the reintroduction of a wealth tax targeting very wealthy individuals in Germany. The party proposes that this tax could raise around 100 billion euros annually, with the funds earmarked for redistribution to address rising wealth concentration. This includes taxing wealth above certain high thresholds to support social benefits and counterbalance cuts to citizen benefits like Bürgergeld.

The Left Party's parliamentary leader, Dietmar Bartsch, has been vocal in his criticism of the accumulation of wealth by the super-rich during the coronavirus crisis. He has expressed concern that millions of citizens are making significant cuts, while the super-rich are accumulating wealth. Bartsch has also called for appropriate taxes on high incomes, including himself, and for politicians to pay into the statutory pension and long-term care insurance.

Finance Minister Olaf Scholz, who earns more than 15,000 euros a month but does not consider himself rich, has acknowledged that he is among the very well-paid in the country. He supports higher taxes for high-income earners, including himself. Scholz has stated that he is open to discussions about a one-time wealth tax and a major tax reform, as proposed by the Left Party.

The growing wealth of the ultra-rich is not just a German phenomenon. By the end of July, the total wealth of more than 2,000 dollar billionaires worldwide reached a record high of around 10.2 trillion dollars (8.7 trillion euros). This underscores the global trend of increased wealth concentration among the richest individuals.

As the debate over wealth distribution and tax reform continues, it remains to be seen how these discussions will shape the economic landscape in Germany and beyond. One thing is certain, however: the issue of wealth inequality is a pressing concern for many, and the calls for action are growing louder.