Greens Criticize Burden on Low-Income Earners in 2027/28 Double Budget

The Greens' social spokesperson Markus Koza accused the government in a press release of manipulating the presentation of top earners' contributions. The government calculates the top earners' contribution too high because it includes not only their own contributions but also the social security contributions paid by their employers. "Das ist eine sehr eigenwillige, unübliche und irreführende Darstellung, die ganz offensichtlich den Beitrag der Spitzenverdiener:innen höher erscheinen lassen soll, als er tatsächlich ist", Koza criticized, speaking of "Tricks".

Koza Accuses Government of Misleading Calculations

According to the Greens' calculations, the net contribution of top earners to budget consolidation in 2027 amounts to only 77 million euros when employer contributions and the income tax reduction are factored out. By 2031, this contribution would rise to 93 million euros. In the same period, low-income earners would contribute approximately five times that amount to consolidation.

The basis for the Greens' calculations is the Impact-Oriented Impact Assessment of the Budget Accompanying Act. According to this, around 1.1 million employees with gross incomes up to 2,630 euros are affected by the elimination of the reduced unemployment insurance contribution. Previously, a reduced contribution applied to this income group, which is now being raised to the standard rate.

In contrast, according to information from the budget report, there is an extraordinary increase in the maximum contribution base for around 400,000 top earners with monthly incomes above 6,930 euros. This is expected to generate around 229 million euros in 2027 and around 312 million euros by 2031. However, the Greens do not directly compare this amount with that of low-income earners, as the government's calculations for top earners also include employer contributions.

Different Calculation Bases

The Greens compare the contribution increase for low-income earners with the increase in the maximum contribution base for social insurance. On this basis, they conclude that persons with low incomes will contribute approximately five times more to budget consolidation by 2031 than top earners. The party sees this as an unequal distribution of burdens.

Koza also emphasized that the government's comparison obscures the actual burden distribution. He pointed out that the calculation of contributions for top earners also includes employers' social security contributions, while this is not done in a comparable way for low-income earners. The Greens therefore demanded a correction of the presentation.

Outlook on the Budget Accompanying Act

The Greens' criticism is also directed at the structure of the double budget for 2027 and 2028 as a whole. The party sees the planned austerity measures and tax increases as a one-sided burden on those population groups that already have lower incomes. The opposition announced that it would continue to pursue the debate about the budget implications in parliament.

The government has not yet publicly responded to the Greens' accusations. The Budget Accompanying Act, which forms the basis for the calculations presented, is in the parliamentary process. The final amount of the contributions and the exact effects on the affected groups could still change in the course of further deliberations.