Economy's robustness or thriving condition?

In a changing political landscape, ideologues in Germany are proposing significant alterations to tax policies, particularly regarding stock gains and dividends. These proposed changes aim to tax stock gains and dividends at the individual tax rate, which is often above the current withholding tax of 25%.

However, the use of social justice as a tool in tax policy is being questioned, with concerns about its effectiveness and potential unintended consequences. As the state's social security systems are heavily utilized, these proposed changes could result in higher taxes for individuals, potentially impacting their savings and retirement planning.

In response to these proposed changes, investors are taking proactive steps to secure their financial future. They are turning to alternative wealth-building methods, such as stocks, real estate, gold, cryptocurrencies, and other tangible assets. Interestingly, some ideologues are proposing to abolish holding periods for these assets, with suggestions to eliminate the one-year holding period for tax-free gains on cryptocurrencies.

Despite the proposed changes, the saver's allowance of 801 euros per person will be retained, providing some relief to individuals. This move indicates a recognition of the importance of personal savings in retirement planning.

The shift towards self-reliance in retirement planning is evident, as investors are making themselves less dependent on the statutory pension insurance, which is increasingly becoming a form of welfare. By taking on personal investment risk, they aim to avoid being a burden on the state in their later years.

However, these changes could lead to a shift away from self-reliance and personal responsibility in retirement planning, increasing reliance on the state. This is a concern for some, as it could potentially discourage the general population from participating in productive assets.

The European Central Bank's rescue has resulted in a loss of around 380 billion Euros in potential investments for German investors. This loss underscores the need for a stable economic environment that encourages investment and growth.

In 2020, more than a third of the economic output was spent on social issues for the first time since the founding of the Federal Republic. This trend, coupled with the proposed tax changes, raises questions about the government's approach to retirement planning and the role of the state in citizens' financial futures.

Some politicians, including members of the CDU, have called for the abolition of the one-year holding period for tax-free gains on cryptocurrencies, arguing this change might happen as early as 2026. This suggests a growing recognition of the importance of cryptocurrencies in the financial landscape and the need to foster an environment that encourages investment and innovation.

As the debate over tax policies and retirement planning continues, it is clear that citizens are taking their financial futures into their own hands. The confirmation email for a subscription has been sent, indicating a growing interest in understanding and navigating these changes.

Ideologues' demonization of private retirement savings has led many citizens to not consider them, potentially falling into old-age poverty. It is crucial that accurate information about these changes is disseminated to ensure that citizens are well-informed and can make informed decisions about their financial futures.

In the context of private retirement savings, the idea of a strong state as a solution to problems is being challenged. Ideologues advocate for redistribution policies in tax policy, but acknowledge that "bad" tax incentives for companies can have growth-promoting effects on wages and employment. Striking a balance between these competing interests will be key to shaping the future of retirement planning in Germany.