Summary of Key Points
Germany's social welfare system, which appears to offer high levels of benefits and equal wealth distribution, is actually a mechanism that "punishes those who work hard and rewards those who choose to be idle." This system exploits the middle class through an extremely low tax threshold combined with steeply progressive tax rates and then relies on unlimited welfare benefits to support the lazy. As a result, it creates a situation where "more effort does not lead to greater rewards, and one can live without working much at all." This system conflicts sharply with the Chinese value of "working hard to achieve prosperity," which has led to widespread dissatisfaction among Chinese people living in Germany.
Analysis 1: The Absurdly Low Tax Threshold
The tax threshold in Germany is set at 12,097 euros per year (approximately 1,008 euros per month). Anyone with a monthly income exceeding 1,000 euros must pay 14% in taxes. What does this mean?
- In Germany, low-paying jobs such as supermarket cashiers and cafe servers earn around 1,000-1,500 euros per month, leaving them with only a few hundred euros after taxes—far from enough to cover basic living expenses (rent and food cost at least 800 euros per month).
- In contrast, in China, the tax threshold is 5,000 yuan per month, and with additional deductions for supporting parents and raising children, almost no one with an annual income of less than 120,000 yuan has to pay taxes (covering 70% of the population). In Germany, however, everyone who works has to pay taxes, even the lowest-paid workers.
Analysis 2: The Steep Tax Rate Curve
Although German tax rates range from 14% to 45%, the rate increases at an alarming pace:
- For a monthly income of 1,500 euros (just above the threshold), the marginal tax rate jumps from 14% to 24%. This means that for a small increase in salary, nearly half of the additional earnings is taken in taxes.
- For those earning over 5,000 euros per month (such as engineers and technicians), the tax rate is as high as 42%.
- The wealthiest individuals (with annual incomes in the hundreds of thousands of euros) only pay a 45% tax rate, which is only 3% higher than that of the middle class!
For example, the author, a senior engineer at the Munich headquarters, pays 42% in taxes, while in China, someone with an annual salary of one million yuan would only pay the highest tax rate of 45%. This means that the middle class bears the bulk of the tax burden, while the wealthy pay relatively little.
Analysis 3: Excessive Welfare Benefits
Germany's "citizen benefits" (formerly known as Hartz IV) are a major issue:
- Single individuals who choose to be idle receive 563 euros in cash plus a housing subsidy of 450 euros per month, for a total of over 1,000 euros.
- Low-income workers with a monthly salary of 1,500 euros only have about 1,000 euros left after taxes—meaning they can earn the same amount by being idle as by working!
- Even more strikingly, an immigrant family with five children can receive a monthly income of 6,000 euros after taxes, which is higher than what many hardworking middle-class families earn!
Such benefits send the message that "you don't have to work to live well," which significantly discourages people from being motivated to work.
Analysis 4: Hard Work Leads to Losses
The German system also penalizes hardworking individuals and families with two earners:
- The marginal benefit of a salary increase is very low. For example, a 50% raise requires 200% more effort, but only results in a 25% increase in net income due to the high tax rates.
- Families with both earners face higher taxes. While one spouse can enjoy tax benefits, the other has to pay more, effectively encouraging the wife to stay at home and take care of the children instead of both working together.
As a result, people become less motivated to work hard, preferring a life of moderate comfort or simply choosing to be idle.
Analysis 5: The Impact on Chinese Values
Chinese people living in Germany, who are generally highly educated and hardworking, believe in the principle of "no pain, no gain." However, the German system shatters this belief:
- They work diligently but end up paying a large portion of their income in taxes.
- Those who choose to be idle (including immigrants) live comfortably off welfare benefits.
- The rewards for hard work are offset by high taxes and benefits, making diligence seem like a foolish choice.
This completely contradicts Chinese values. It's no wonder some suggest that Germany represents a form of "true communism"—where wealth is evenly distributed, but this type of communism punishes those who work hard and discourages diligence.
Final Question: Is This System Reasonable?
The German distribution system was intended to be fair, but it has led to the opposite effect: **hardworking people are exploited, while the lazy are supported by the state.* Over time, who will still be motivated to work? Society's vitality will likely decline. This highlights the importance of balancing welfare and taxation; if not managed properly, they can become a trap that supports laziness and punishes effort. What do you think?