CDU split deepens over taxing dividends and rental income for social security
Berlin. Christoph Ploß, the former head of Hamburg's CDU, is pushing for a party resolution against health policy plans proposed by the SPD. According to Der Spiegel, Ploß will submit a motion at this weekend's CDU party conference calling on the party to reject the SPD's proposal to levy social security contributions on capital gains and rental income.
Tensions within the CDU flared last weekend after Health Minister Nina Warken made remarks that could be interpreted as openness to expanding the revenue base for social contributions. Warken later clarified that her comments should not be taken as support for the SPD's proposal, which she deemed "not constructive."
Ploß, however, sees an urgent need for action. "The CDU must firmly reject the demands of left-wing parties to impose social security contributions on dividends and rental income," the Bundestag member told Der Spiegel. He dismissed the ideas as "half-baked," warning: "This would create entitlements for those paying these contributions. For example, what about someone who has private health insurance but pays social security contributions on top of capital gains tax—and then gains claims under the statutory health system?"
Ploß also cautioned that extending social security contributions to rental income would trigger a surge in rents. "Given the already high rents, especially in Germany's major cities, the left-wing proposal would be disastrous—even from a social perspective."
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