Habeck's Proposal to Tax Capital Gains for Social Contributions Faces Intense Scrutiny

The Green Party's plan to expand healthcare funding by taxing capital gains draws sharp criticism and limited support ahead of Germany's federal election.

Green Party candidate Robert Habeck has proposed taxing capital gains, such as dividends and interest, to help fund Germany's healthcare system and reduce pressure on wage-based contributions.
Critics, including the CDU, FDP, and SPD, argue the plan could harm small savers and private investors, while failing to address inefficiencies in the healthcare system.
Supporters, including the German Trade Union Confederation (DGB), praise the proposal as a step toward fairer contributions, emphasizing the need for high exemptions to protect low-income investors.
Habeck and Green Party leaders stress that the tax would primarily target wealthy individuals with significant investment income, though specifics on thresholds and implementation remain vague.
Economic analysts warn that the proposal could reduce net returns for private investors by up to 38%, raising concerns about its impact on private retirement savings.