Wiesbaden's wealth gap sparks calls for bold tax reforms to ease inequality
Wiesbaden: One Millionaire for Every 982 Social Security Contributors
The NGG Rhein-Main union has highlighted a stark disparity in Wiesbaden: for every 982 employees subject to social security contributions, there is one income millionaire.
The union cites figures from the Hessian State Statistical Office and the Federal Employment Agency, which show that Wiesbaden is home to 154 income millionaires, while 151,200 people hold jobs subject to social security contributions. Hendrik Hallier, managing director of NGG Rhein-Main, warns of a "growing social imbalance in Wiesbaden."
"At issue is the fact that a few live in a 'gold-tier' status, while more and more peopleâdespite working full-timeâstruggle to scrape together enough money for rent, fuel, and groceries," Hallier says. In the long run, he argues, this even threatens democracy.
Demands for Federal Policy
The union is calling on local CDU and SPD members of the Bundestag to "maintain a social course" in the government's upcoming reform package. It argues that labor income should not be taxed more heavily than capital gains such as interest or dividends, which are often subject to just a 25% flat-rate withholding tax. By contrast, an average couple pays 43% in taxes and contributions.
"It's about ensuring that people who work day in and day out aren't left even further behind," Hallier stresses. Inheritances and wealth currently account for just 1.1% of total tax revenue. The union demands that a wealth tax and higher top income tax rates no longer be treated as taboo. Additionally, it calls for the abolition of income-splitting for married couples, arguing that the current system often discourages women from working and perpetuates outdated gender roles.
