Gitta Connemann, the federal chairperson of the Mittelstandsunion, warned that illegal labor activity will increase if social contributions continue to rise. Speaking to RTL and ntv, Connemann stated that the threshold for acceptable social contributions was reached well before 50 percent. She argued that if social contributions reached that figure, the state would cease to be an attractive option for both workers and businesses, effectively signaling that going into the underground economy would be the preferable choice. Consequently, she emphasized that current expenditures must be restrained and revenues stabilized, a goal she links to the reform of statutory health insurance.
In addition to reforming social contributions, the CDU politician stressed that greater work must be performed to maintain competitiveness. She noted that there are many employees who are willing to work more, but stressed that performance needs to become economically worthwhile. To achieve this, she insisted that tax policies must be adjusted. Specifically targeting the income tax, she characterized it as a tax burden on small and medium-sized enterprises, advocating for incentives that would benefit both employees and entrepreneurs.
