Tag #Contribution Assessment Ceiling

How would the proposed increase in the contribution assessment ceiling impact different regions of Germany and various income groups?

Raising the contribution assessment ceiling would significantly increase health and long-term care insurance revenue, but also reduce government tax revenue due to increased deductions for social insurance contributions. The impact would be disproportionately felt in wealthier states like Baden-Württemberg, Bavaria, and North Rhine-Westphalia, where a higher percentage of employees earn above the current threshold. This raises concerns about economic competitiveness and the potential for a wage-price spiral.