Germany's wealth gap fuels debate over tax policy and social‑welfare cuts

Analyses of German income and wealth data show that the top ten percent of earners have a monthly salary of at least €3,529 and hold assets of €477,000 or more, placing them firmly in the country’s richest tier. Oxfam reports that the number of German billionaires rose to 172 in 2025, prompting calls for higher top‑rate taxes and a billionaire levy, which the current government has not pursued.

Instead, the Merz‑led coalition, supported by the SPD, is advancing extensive reductions in social assistance. Proposed measures include tightening the basic unemployment benefit (now called "Grundsicherung Arbeitssuchende"), cutting disability support and child‑care rights, eliminating post‑youth‑care, reducing the child‑support allowance, and raising co‑payments for medicines and health services. The government also plans to lower sickness benefit from 70 % to 65 % of gross wages and to raise the statutory retirement age gradually to 70. Critics cite these steps as a “social kahlschlag” that threatens the most vulnerable, quoting Professor Roland Rosenow: "die alles übertreffen, was das Recht der Fürsorge und Existenzsicherung jemals kannte und zwar seit 1925".