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Friday, April 06, 2012

Covert or Overt tax - the young will pay whatever

I am not going to bore you by going on even more about all of this intergenerational nonsense but I thought this was an interesting bit of news.

Since I first started working in the age business I have been saying that as long as 1+1 = 2 there will be a reduction in the disposable income of younger people as their taxes rise to pay for the effects of the ageing population.

Now in the classic British muddled way, these tax changes will be introduced so that nobody has an idea of what is happening. That is not the German style.

Have a read of this news. 

Angela Merkel, plans to introduce a tax of a demographic nature to deal with the costs arising from the increasing ageing of the population and the greater longevity of citizens.

Details of the so-called “demographic reserve” were revealed by the newspaper Die Welt.

The Vice-President of the parliamentary group of the Union says that they must “act now for way to proactive for the time from 2030, when the generation of the ‘boom’ of the years 50 and 60 (of the last century) reaches the age of retirement and therefore increase healthcare costs and permanent care”.

The Union considers that permanent systems of social security funding is the greatest challenge to the country which is currently facing and includes the initiative for the “demographic reserve” in its ‘demographic strategy’, which the Cabinet of Angela Merkel intends to adopt at end of month.

Call it a demographic tax or hide it in general taxation you are going to pay. Dick Stroud

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