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When you realize your take home in Germany is higher than in San Francisco in absolute numbers despite 50% income tax... Mindblowing.

by bitL 9y ago

tomschlick 9y ago
> 50% income tax Thats insane
- FigBug 9y ago
  They aren't 50%, highest tax bracket is 45% over 250001 EUR or 294440 USD. https://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax https://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax Church tax could be another 9% if you are a member of a church. Compare to the US where top tax rate is 39.6% + 12.3% = 51.9% in California.
- anarazel 9y ago
  >> 50% income tax > Thats insane It's 45%, and it's for the bracket above 254.447€ as a single. I make decent money in SF, and made decent money in Germany. My effective taxe rate is about the same.
- jorgemf 9y ago
  It depends. Bear in mind those taxes include a public health system and public education among other things.
- jacobush 9y ago
  When you put it like that. But a big chunk of that is (I presume) mandatory pensions payments? So just a little insane?
  - revelation 9y ago
    Also healthcare. Though taxes are certainly higher; you absolutely have to consider 19% VAT vs. 8%? if at all sales tax and other taxes.
  - anarazel 9y ago
    45% is the ceiling bracket for income insurance, then there's pension insurance (~9.x%) capped at ~70k income, unemployement (1.5%) also capped at 70k, solidarity surcharge (up to 5.5%, basically redistribution between parts of Germany). Health insurance is separate again (up to %7 capped at 50k). But with that you have free education including college, health insurance without deductibles & co-payments, continued payment in case of loss of work, kinda somewhat decent-ish retirment money.
- deleted 9y ago
  [deleted]
- rb808 9y ago
  50% That's about the same as American blue states. Remember to include state, city, medicare, social security and property taxes. Add healthcare and I'm pushing 55%
  - bitL 9y ago
    Actually it's more from employer's side - there are taxes employer pays that you don't see in your brutto income from which you pay 50% yourself.
    - rb808 9y ago
      Yep same in US. Social Security and Medicare are also paid by employer and most states have payroll taxes.
    - deleted 9y ago
      [deleted]
- deleted 9y ago
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- pbarnes_1 9y ago
  It's the price of civlization for all, not just the lucky few.
pbarnes_1 9y ago
I moved from Australia (with ~50% top marginal tax rate) to the US (where everything's all about "low" taxes and getting nothing for them except funding dumb wars) and my take home pay was higher in Australia. Let's not even get started on the underfunded schools, crime, etc, etc. To send your kid to a decent school in SF costs 25k+/year per kid. Most people move out of the city after one kid.

When you realize your take home in Germany is higher than in San Francisco in absolute numbers despite 50% income tax... Mindblowing.

by bitL 9y ago

When you realize your take home in Germany is higher than in San Francisco in absolute numbers despite 50% income tax... Mindblowing.

tomschlick 9y ago

> 50% income tax Thats insane

FigBug 9y ago
They aren't 50%, highest tax bracket is 45% over 250001 EUR or 294440 USD. https://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax https://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax Church tax could be another 9% if you are a member of a church. Compare to the US where top tax rate is 39.6% + 12.3% = 51.9% in California.
anarazel 9y ago
>> 50% income tax > Thats insane It's 45%, and it's for the bracket above 254.447€ as a single. I make decent money in SF, and made decent money in Germany. My effective taxe rate is about the same.
jorgemf 9y ago
It depends. Bear in mind those taxes include a public health system and public education among other things.
jacobush 9y ago
When you put it like that. But a big chunk of that is (I presume) mandatory pensions payments? So just a little insane?
- revelation 9y ago
  Also healthcare. Though taxes are certainly higher; you absolutely have to consider 19% VAT vs. 8%? if at all sales tax and other taxes.
- anarazel 9y ago
  45% is the ceiling bracket for income insurance, then there's pension insurance (~9.x%) capped at ~70k income, unemployement (1.5%) also capped at 70k, solidarity surcharge (up to 5.5%, basically redistribution between parts of Germany). Health insurance is separate again (up to %7 capped at 50k). But with that you have free education including college, health insurance without deductibles & co-payments, continued payment in case of loss of work, kinda somewhat decent-ish retirment money.
deleted 9y ago
[deleted]
rb808 9y ago
50% That's about the same as American blue states. Remember to include state, city, medicare, social security and property taxes. Add healthcare and I'm pushing 55%
- bitL 9y ago
  Actually it's more from employer's side - there are taxes employer pays that you don't see in your brutto income from which you pay 50% yourself.
  - rb808 9y ago
    Yep same in US. Social Security and Medicare are also paid by employer and most states have payroll taxes.
  - deleted 9y ago
    [deleted]
deleted 9y ago
[deleted]
pbarnes_1 9y ago
It's the price of civlization for all, not just the lucky few.

pbarnes_1 9y ago

I moved from Australia (with ~50% top marginal tax rate) to the US (where everything's all about "low" taxes and getting nothing for them except funding dumb wars) and my take home pay was higher in Australia. Let's not even get started on the underfunded schools, crime, etc, etc. To send your kid to a decent school in SF costs 25k+/year per kid. Most people move out of the city after one kid.