The VdK, Germany’s Social Welfare Association, backs the SPD’s latest proposal to broaden the statutory health and nursing care system’s funding base to include rental and capital income. However, it stresses the need for significant tax allowances.
President Verena Bentele told the Funke Media Group newspapers on Tuesday, “We are relieved that a long‑time core demand of the VdK is finally being taken up in discussion of a fair funding model for the welfare state. No longer should people who earn substantial profits from share trading or renting fail to contribute to social‑security financing”. She added, “It is overdue that high profits pay a fair share. Small savers can be adequately protected through well‑designed, generous allowances”.
Similarly, Michaela Engelmeier, chair of Sozialverband Deutschland (SoVD), told the funke titles, “We support the initiative. From SoVD’s perspective it is correct to include income from employment as well as from rental, leasing and capital in the contribution base”. She also urged that the health‑insurance contribution ceiling be raised to the significantly higher level of the statutory pension scheme, arguing that such a move would strengthen the insurance’s financial capacity, broaden its funding base and distribute the contribution burden more fairly among low, middle and high incomes.
