2023-08-07 21:15:30
The middle class in Germany has shrunk slightly over the past decade. However, it is still unclear how the corona pandemic and the consequences of Putin’s war against Ukraine influenced this development. According to the findings of the Ifo Institute for Economic Research, one finding applies regardless of this: In a European comparison, the German middle class bears a particularly high tax burden, as a study published on Monday shows.
In the local tax and welfare state, people with middle incomes only get half of every extra euro they earn, summarizes Andreas Peichl, head of the Ifo Center for Macroeconomics and Surveys. “More work and better performance therefore only pay off to a very limited extent in the middle class.” In this country, people with middle incomes are “on the edge of their resilience”.
#middle #class #pressure