In the eyes of most citizens, we still live in a meritocracy. It is characterized by the fact that those who do something are ultimately rewarded for their performance and thus make progress. And where many individuals advance and increase their prosperity, the general level of prosperity continues to rise.
So far the gray theory. But what about everyday life in Germany? Well, it hasn’t presented itself as very inviting for some time now, especially not for those contemporaries who still want to achieve something. They almost seem like they’ve fallen out of time.
German tax law is a key reason for this finding. It is designed in such a way that the last euro earned is taxed the most. That was also the case in earlier times, but people were still willing to perform at that time. In many cases, they are no longer that, because the top tax rate, which previously only applied to incomes above 250,000 marks, which is the equivalent of around 125,000 euros, now applies at 80,000 euros and thus much earlier.
Skilled workers used to be lured with more money, today with less work
The inevitable question now is how to use such a tax system to attract skilled workers. The answer is that companies do not promise their employees more money, but rather more time off, holidays or other benefits that do not result in the employees being taxed more and more by the state.
Our tax system, of all things, means that people work less and less because the extra work is no longer worthwhile, or too much of this earnings goes to the state as taxes and social security contributions. Instead, people prefer to protect their health and work a little less, but many are no longer striving for higher salaries.
If only individuals act according to this premise, the system as a whole will not be disturbed. In Germany, however, we have now come so far that an increasing number of people think and act in this way. In this way, Germany willingly or unwillingly liberates itself from a large part of the work that could be done, but is no longer done because it is simply not worth it anymore.
The end of this development is a country that no longer increases its prosperity, but only lives from it and slowly withers away.