Millionaires' Soaring Incomes in 2021: A Sharp Uptick
Significant surge in the count of annual millionaires observed in 2021 - Significant rise in affluent population, categorized as millionaires, observed in the fiscal year 2021
Here's a lowdown on the jaw-dropping millionaire income rise in 2021, as per theStatsOffice. Buckle up, folks!
The average income of millionaires jumped to a staggering 2.8 million euros in 2021, rising by a whopping 200,000 euros compared to the previous year. After tweaking for inflation, the number of these high-rollers increased by a mind-boggling 12 percent! This percentage soars above the typical inflation-adjusted growth rate of 6 percent seen between 2010 and 2021. TheStatsOffice attributes this steep surge to pandemic-related factors, hinting at some extraordinary economic effects in 2021.
larger chunk of these millionaire earnings stemmed from business operations (60 percent), followed by primarily non-self-employed work (19 percent), and self-employed work (15 percent).
Approximately 134,000 tax-paying individuals were slapped with the steep 45 percent top tax rate in 2021, a slug applied to those earning a cool 274,613 euros or more individually, or 549,226 euros together.
The statistics are based on tax and income data from the 2021 wage statistics, provided by the Federal Statistical Office. Interestingly, these stats are only doled out about three and a half years after the end of the tax year.
The accelerated growth of income millionaires during crises contrasts starkly with a rise in poverty, as pointed out by Bettina Kohlrausch, the scientific director at the Institute for Economic and Social Research at the Hans Böckler Foundation. She warns that the heightened social inequality in Germany, particularly among those with moderate income levels, is a legitimate concern for many. "This widening disparity can bolster those who challenge democratic order," Karen pointed out.
Worth mentioning, the city of Wiesbaden often makes the list of major hubs for income millionaires in Germany[4]. However, detailed information on the sources of their income isn't easily accessible. Some of the potential sources may include:
- Successful businesses in industries such as manufacturing, tech, and finance.
- Investments in real estate, stocks, and bonds.
- High-paying careers in finance, law, and medicine.
- Inherited wealth or family wealth.
Without a doubt, the pandemic brought about significant economic challenges, but certain sectors and investments managed to stay afloat or even flourish, potentially contributing to increased wealth for some individuals. However, data on the 2021 millionaire growth during this period remains elusive.
The community and employment policies should address the growing income disparity among tax-paying individuals, particularly those with moderate incomes, given the concerning rise in poverty highlighted by Bettina Kohlrausch from the Institute for Economic and Social Research at the Hans Böckler Foundation. In light of the increasing number of millionaires and the escalating social inequality, it is essential to evaluate the impact of various sectors, such as finance, manufacturing, tech, and real estate investments, on this phenomenon.
