Friday, August 10, 2018

Kindergeld Story

There's this topic which has been out there for months, but this week....it got picked up by the SPD Party and they are going to make it a major issue to be discussed.  Focus, the German news magazine, discusses part of this.  So the topic is.....EU residents coming into Germany with their families and registering for 'Kindergeld'..

Kindergeld?  Decades ago, the political folks built this invention into the system to 'award' families with kids.  After you paid your taxes, this was created to funnel a monthly 'reward' back to you, for each kid.  Up until age 18, you the parent, would receive this money.  If the kid still lived in your house (age 18-21), then you could still get the money.  If the kid still lived there but was in a job program or university (age 21-25), then you would still get the money.

Amount?  Right now per kid....around 190 Euro (figure 230 US dollars).  So if you had four kids....it's a fairly big chunk of money.

So what is the new discussion? Wel.....the numbers keep increasing on the money paid out by German states to recipients of other EU countries.  Mayors are now complaining about this angle of abuse (they believe it's not right to award other EU members).

In the summer of 2018, it was noted that Kindergeld is going to 268,336 kids living OUTSIDE of Germany. That's basically 10-percent growth since December of 2017. 

There's even a suggestion that the mafia elements have figured out the scheme and set up their members to benefit. 

The chief problem here in changing this?  The EU stands in their way.  They say if a person pays into the system (no matter which country they come from), they are entitled to the payment.

Various political figures have made the comment that if you cut these non-Germans out of the deal....then you could take the present money and put it to the present German kids....in particular, the Hartz IV crowd (the welfare class). 

My guess is that Kindergeld basically has to be destroyed in a complete fashion, and something has to be invented which has no relationship to a benefit.  As for the SPD getting this out front and making it a major accomplishment?  My thinking is that no matter what they invent....the EU will come back and say that they have to give it to non-Germans who reside in Germany.  So there's zero-gain in the end. 

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