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Taxes aren't that high in Germany. 40% - compared to what, 35% in the US? Especially considering that a lot of what you pay in Germany is not a tax but insuran
by turbinerneiter 9y ago
Taxes aren't that high in Germany. 40% - compared to what, 35% in the US?
Especially considering that a lot of what you pay in Germany is not a tax but insurance - health, social security, rent.
Also, no the taxes for high earners aren't that huge. Basically, the progressive tax stops growing at 50k and stays at 42% income tax. The insurances aren't progressive. If you take the total tax payed it's pretty flat over the whole income spectrum. I.e. sales tax hit rich people less because they don't have to consume all their income. Tax on property and wealth are low to non-existent. No inheritance tax either.
Middle class is actually where the tax increase is the steepest. Poor people as in working poor are relatively new in Germany - low income sector was created about two decades ago.
And no, our richt don't pay their taxes either. Top 0.1% evades 30% of taxes, among the 99.9% rest it's pretty much uniform 5%. There was an awesome report that I can't find right now. Workers in Germany also often can't evade. My tax is deduced before I'm, payed. Some jobs can evade tax by moonlighting.
Generally, _people_, even rich, pay their taxes (as they have no choice) - it's companies that evade big time. And the filthy rich.
Situation is much better than in the US, but the whole tax system is still bad. Basically, tax on profit is the best you can have. Companies either pay or invest - both cases are a win. Tax evasion breaks that and workers have to pay.