Xinhua, Berlin :
The poverty rate in Germany has hit a post-reunification high of 15.7 percent, up from 14.7 percent a decade ago, according to a latest research report available here.
The Report on Poverty Developments in Germany 2017, conducted by the Equality Association, defines poverty in relative terms as households with less than 60 percent of the median income of all households.
Christian Woltering, who led the NGO’s project, told Xinhua that “the causes are multifaceted but essential changes to taxation policy over the past 20 years have led to growing inequality.”
“Income is taxed more heavily than capital,” said Woltering. “There are fewer wealth taxes, for example, inheritance tax is very low, and social security has been reduced.”
The report says that economic growth in Germany did not reduce poverty, which actually increased while GDP grew from 2.3 trillion euros (2.4 trillion U.S. dollars) in 2005 to 3 trillion euros (3.1 trillion U.S. dollars) in 2016.
Germany has seen significant labor market reforms, beginning with the Agenda 2010 Harz reforms under Chancellor Gerhard Schroeder and continuing in the same direction under Chancellor Angela Merkel.
The poverty rate in Germany has hit a post-reunification high of 15.7 percent, up from 14.7 percent a decade ago, according to a latest research report available here.
The Report on Poverty Developments in Germany 2017, conducted by the Equality Association, defines poverty in relative terms as households with less than 60 percent of the median income of all households.
Christian Woltering, who led the NGO’s project, told Xinhua that “the causes are multifaceted but essential changes to taxation policy over the past 20 years have led to growing inequality.”
“Income is taxed more heavily than capital,” said Woltering. “There are fewer wealth taxes, for example, inheritance tax is very low, and social security has been reduced.”
The report says that economic growth in Germany did not reduce poverty, which actually increased while GDP grew from 2.3 trillion euros (2.4 trillion U.S. dollars) in 2005 to 3 trillion euros (3.1 trillion U.S. dollars) in 2016.
Germany has seen significant labor market reforms, beginning with the Agenda 2010 Harz reforms under Chancellor Gerhard Schroeder and continuing in the same direction under Chancellor Angela Merkel.
