The Federation of Taxpayers (BdSt) has strongly criticized a proposal for a so-called “Boomer Soli” a special levy targeting high retirement incomes. Responding to a recent publication by the German Institute for Economic Research (DIW), BdSt President Reiner Holznagel stated that while discussions regarding intergenerational equity and the division of responsibilities between younger and older generations are necessary, introducing a new redistribution system within the pension system is misguided.
The DIW’s proposition suggested a supplementary payment from individuals with significant retirement incomes, which would then be allocated to those receiving particularly low pensions, aiming to mitigate the risk of poverty in old age while potentially avoiding further burdens on younger generations through increased pension insurance contributions.
Holznagel argued that such an approach would create detrimental incentives and represent another flawed attempt to disrupt the established and equitable principle within the pension system, where contributions are demonstrably reflected in pension entitlements. He characterized the proposed levy not as a “Boomer Soli” but as a “preventive Soli” suggesting it would stifle initiative, particularly among skilled workers crucial to the national economy.
The BdSt president emphasized the need to stabilize the statutory pension system and cautioned against current political initiatives, explicitly rejecting the concept of a static pension level and the expansion of benefits for mothers. He advocated for a more sustainable approach to ensure the long-term viability of the German pension framework.
