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That's only the direct tax on income. Don't forget VAT, high petrol taxes, high electricity taxes. I'd say your total tax rate is somewhere around 70% if you ta
by kybernetyk 10y ago
That's only the direct tax on income. Don't forget VAT, high petrol taxes, high electricity taxes. I'd say your total tax rate is somewhere around 70% if you take all that into account.
Also the pensions aren't something to write home about really. (There's already politicians starting to talk that everyone should get a standard pension - no matter how much they paid into the system. Give it a few decades and we might arrive there).
- rubber_duck 10y agoThis - if you're 20s or early 30s the chances you'll get to use the pension are slim to none, considering how the pension funds are structured, current state of work force/pension system and future trends, etc. there's going to be huge restructuring down the road and the chances of you getting out proportional to what you paid in are ~0 if you're above average income. You would do much better to invest that money either in your education/career/life standard or doing proper investing.
- MagnumOpus 10y ago> Also the pensions aren't something to write home about really State pensions are around 50% of your work income. Even if that is only €50k per year in the end, that would be equivalent to the annuity from a €1 million private pension pot. And it is backed not by a company which will go bankrupt twice over in the next forty years, but the taxation powers of the German government, which is famously good at balancing its books. TLDR: The pensions are better than most anywhere in the world - though you also pay the price for it.
- kybernetyk 10y agoYes, now they are planned to be 50%. But in 30 or 40 years? I'd rather put the money in a private saving plan than to hand it over to the government for a vague promise of "no worry, we'll pay you somehow back".