Eastern Commissioner Schneider – SPD man proposes “basic heritage” – 20,000 euros for everyone on their 18th birthday?

East Commissioner Schneider: SPD man proposes “basic heritage” – 20,000 euros for everyone on their 18th birthday?

The SPD Eastern Commissioner Carsten Schneider wants to reduce inequality in Germany. For this he brings a “basic heritage” into play. “That would be an interesting instrument,” says Schneider. The DIW has calculated a usable amount.

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In order to reduce social inequality in Germany, the Federal Government Commissioner for East Germany, Carsten Schneider (SPD), proposes a so-called basic heritage. “It is no longer possible for a large part of the population to own property, especially in the metropolises,” the SPD politician told the newspapers of the Funke media group (Thursday editions).

“A basic inheritance would be an interesting instrument to stop this development and to make the starting opportunities in working life a little fairer.”

DIW calculated how inequality could be reduced

The German Institute for Economic Research (DIW) had calculated that a basic state inheritance of up to 20,000 euros for all 18-year-olds and their financing through an inheritance or wealth tax would significantly reduce wealth inequality in Germany.

The so-called Gini coefficient – the standard measure of inequality – would fall by five to seven percent, depending on how it is structured.

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Schneider on basic heritage: “I think that’s a very exciting idea”

“I think that’s a very exciting idea,” emphasized SPD politician Schneider. “Inequality is increasing from generation to generation, which is less due to active income than to wealth growth. If you don’t have anything, it’s difficult to put aside something and build up a fortune.”

In terms of financing, Schneider spoke out in favor of “a higher inheritance tax for the top ten percent”. In Germany, inheritances worth millions are taxed too little, he criticized. “We run the risk that a rentier society that lives on inheritances will detach itself from normal working society.”

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