On the occasion of the OECD report published today on the tax burden on employees, BDA Managing Director Steffen Kampeter explains:

Berlin, 29 April 2021: The OECD report puts it in black and white: Germany once again has the second-highest tax burden of all OECD countries. One thing is clear: the German economy will fall behind in international competition if non-wage labour costs continue to rise. In the pandemic, this is poison for the longed-for recovery of our economy and dangerously sways the economic train. For our economy to run again and for the economy to pick up, it needs the right framework conditions. Our social systems therefore need to be reformed and are in desperate need of a 21st century update. A stop sign on social security contributions at 40 per cent is essential. Reforms are needed to ensure that social security systems, such as pensions, can be financed sustainably. There is no alternative but for the costs arising from the ageing of society to be distributed fairly among the generations - because this is the only way to maintain long-term confidence in the statutory pension.