Burden sharing at the expense of all
Crisis, crisis, crisis, who will finance our next crisis.
The past few years have been unmistakably crisis years for just about everyone. Financially as well as emotionally, the consequences and repercussions of the “refugee crisis”, ” Corona crisis “, “financial crisis”, inflation and economic crisis are still to be managed today. The acute political situation with fighting in Eastern Europe, which has taken on the appearance of times long past, also creates uncertainty. Hardened fronts, a moderately severe energy crisis and renewed refugee flows are placing a considerable burden on the population and state coffers.
Already during the pandemic, enormous sums of money were raised by the legislature to mitigate or postpone perceived dangers and economic damages. But how, and especially where, are the many billions more to come from which are needed for disease victims, economic rescue, military aid and energy crisis?
The suspicion is obvious. This time, too, the financial hole will once again be at the expense of the taxpayer, thanks to the government’s spending spree, or rather will affect all those who can supposedly “afford” a further financial burden. When Siegmar Gabriel (SPD) first floated the term “burden sharing” in 2020, he was fueling the debate about an imminent “forced taxation” of property owners. Since then, rumors on the subject do not cease, and with each additional crisis, people’s fears for their homes and farms intensify. Whether the burden sharing will come and in what form is currently still open. Nevertheless, it is a good idea to start thinking about ways to protect your assets today.
Burden sharing - origin and history
After 1945, the inconceivable destruction of the Second World War made it necessary to provide funding for the support of war-affected and displaced persons. With the introduction of the 1952 Burden Equalization Act, it was now possible for displaced persons, late returnees, and all Germans who had suffered war losses to receive compensation for their losses.
Funding for this compensation has been shifted to little/no affected parties. With the so-called Expropriation Act in Germany, every German who owned real estate was required to pay 1.6% property tax for 30 years on a property value established in 1948. Comparable approaches would, of course, also be conceivable today to cover the enormous costs and compensation of “casualties” of the past years.
We advise our clients to question their current investment strategy and to have it reviewed with regard to our proven asset protection methods. Many asset strategies, offered in the past by so-called experts, often do not stand up to professional scrutiny in practice. In plain language, this means that your assets are not sufficiently protected from third-party access and it is only a matter of time before these assets are siphoned off. Of course, we also offer a second opinion on this topic. Let our experts review your asset investment. We would be happy to show you further savings opportunities and optimization potential. Your money should be worth it!
Rumors on the subject of load balancing in 2024
- Expropriation of private real estate assets
- Law regulating the social compensation law
- Taxation of real estate assets
- Foreclosure mortgages for real estate owners
- Establishment of a European Property Register
- Energy costs and increased cost of living
We support you in asset protection
- Tax law advice and tax representation in Germany
- Advice on assets in Germany and the EU
- Asset allocation and tax optimization
- Accounting and asset management
- Advice and support on the subject of emigration
- Holistic organization of an asset management
- Review of existing asset management
- Advice on the subject of inheritance and inheritance tax in Germany
- Advice on estate planning
Helpful articles on the topic of load balancing:
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About the author
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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