Big Tax Cuts, Bigger Spending Cuts
b) Not if you benefit from the decrease of the “Spitzensteuersatz” > (maximum income tax percentage) from 48.5% to 47% (the “big bang” to > 42% will follow till 2005 and I bet after that the next elections we > will start talking about those 35% again). (Even _if_ you voluntraily > contibute to the social insurance.) You have to pay social insurance on a much lower income then income taxes. So if the decrease in income taxes means nothing to you because you do not earn enough money the rise in social insurance still hits you. This kind of tax cuts means that the poorest will again be hit the hardest while the richest get of best. Not as bad as in the US but its still ugly. Especially after the eco tax which makes those who have to leave cheap outside town and travel to work pay most (These happen also to be the ones who cannot afford newer cars and have to drive the old things what need more fuel). One more thing about health insurance. You are not forced to take that if you are below a certain income but since you cannot live without you have to take that voluntarily, without having your employer pay his share. Get it? Be poor – pay more on your health insurance. I used to pay a round 17% of my gross income, now that I actually got a pay rise I will be reevaluated and may be into compulsory health insurance and actually pay less – not just in percentage but also in cash. Reducing income tax is one thing, but reducing “outgo” taxes should be more of a priority. Many people would spend more if things were cheaper and it would benefit all levels of society.