Contents page 1 — “The least of Hartz IV recipients are lazy” side 2 — “The marginal burden at a low additional income is very high” On a page to read

13 years after the introduction of the policy are discussed, once again, vividly on Hartz IV. of the state’s citizens is To provide, in fact, a basic income, without considering whether you are actually in need of? Andreas Peichl is head of the Ifo center for macro-Economics in Munich and analyzed the effects of Hartz IV.

Zeit ONLINE: Mr Peichl, the Greens and the SPD have stated, you want to overcome Hartz IV. The FDP wants money for a liberal citizen, even the CDU, to think about a General reform. Creeps now the basic income in Hartz IV?

Andreas Peichl: The benefits of Hartz IV, i.e. the unemployment benefit II, but also housing benefit and child allowance were always a kind of basic income, even if not unconditional. The current proposals for the reform of Hartz IV also a need that must be demonstrated. This is not to convey in a welfare state differently, the tax will be redistributed in the medium. Who pays taxes, accepts a redistribution if the social security benefits is subject to certain conditions. Therefore, the present sanctions provided for in the Hartz-IV-System will have a permission. Studies show that the mere existence of Pressure is important for the cohesion of society.

TIME ONLINE: Who pays taxes, don’t want other lazy hanging in the social Mat?

Prof. Dr. Andreas Peichl

Andreas Peichl is head of the Ifo center for Makoökonomik and surveys. He is also a Professor of macro-Economics and financial science at the Ludwig-Maximilians-University of Munich.

Peichl: Apparently this is so. The problem is that, for many years, it is precisely this human image has been propagated. This is not true. The sanction rate is about three percent, shows the statistics of the Federal employment Agency. The least number of Hartz IV recipients are lazy or don’t work interested. The opposite is the case: most people want to work. But the current System prevents this.

TIME ONLINE: Why?

Peichl: recipients of transfer payments will be punished for in addition to earned money. Because benefits from the basic protection to be just as melted as the housing allowance and the child allowance with an increasing income, or deleted. At the same time, charges with its own wage very quickly in taxes and social security. If one adds up both the taxes and the reduction of social benefits, does not exceed the load limit – this is the part of the additional income that needs to be delivered to the state – the 100-percent mark. For comparison: The top tax rate for income tax is included solos, a good 44 percent. Of transfer recipients can only dream of.

And so it comes to the perverse Situation that, although extra money is earned, low-income families have less net income in the bag, as if you dispense with work and just social benefits.

Hartz IV Hartz IV

The Hartz IV unemployment benefit II, to be referred to entered as the fourth law for modern services on the labour market on 1. January 2005. It is a basic backup performance, especially for job-seekers, is provided through the local job centre.