Yet, real estate investments present an additional private pension pot for lots of mittelstand workers in small and medium-size firms, and even the main personal pension to many who are self-employed. Instead of pressurising these stakeholders and discouraging such investments by the increasing the capital gains tax, the government should rather support real estate purchases. This could ease private pension planning and as such, be a means to counteract the steady increase of old-age poverty. Considering high tax revenue, the policy of low interest rates of the ECB and the associated insidious expropriation of depositors, an increase of capital gains taxes would further harm individual responsibility and confidence among the population.
—Julia Münch, Wald-Michelbach, Germany
©OECD Observer August 2014