German Freelancer Tax

The Merkel government has proposed a plan called “Rewarding Life’s Work” which is essentially a 350 Euro per month social security contribution that would be required by all the self employed. Add the new tax to required health insurance, rising energy and food costs and Berlin may loose some of it’s appeal for musicians. My personal opinion is my generation is now seeing it’s first real economic challenge. There are bridge tolls in the NY area that are $15. $10 is more like $1 used to be. We can complain but the world’s resources are being fought for and there are smart people on the other side of the world working all day for pennies. I would like a Utopia where artists could just concentrate on art but I don’t forsee that happening. My advice is work hard and use technology to your advantage. Use it to create pockets of time to paint and sing your masterpieces world be dammed.

“The German government’s plan to force freelancers to pay a compulsory retirement ‘contribution’ will kill off entrepreneurship and destroy millions of independent careers. That’s the opinion of Tim Wessels, an IT specialist from Hamburg who has launched a petition against the so-called “Rewarding Life’s Work” law. Freelancers will be forced to pay €350+ a month to support the broken pension system, on top of the €300-€600 they must already pay for health insurance (plus other taxes). Demanding that entrepreneurs fork out at least €650 a month in contributions before they earn a single cent will end innovation in Germany.” – deskmag.com

For more info on Rewarding Life’s Work: Skrufff, Exberliner and Deskmag

photo credit: lampenlee