6 ms·

so .. 59% tax then?

• CodesInChaos 9y ago
  You can't just add the percentages for income tax and VAT. If you were to combine a 40% income tax and a 19% VAT, you'd end up with 49.6% effective tax. (1-(1-0.40)/1.19) (I'm not arguing that this naive computation makes sense, you pay different VAT rates or no VAT at all, depending on what you buy. I don't think you have to pay VAT on rent, which is a significant part of the income for many people and reduced VAT on most groceries)
  • germanier 9y ago
    For the middle-class the estimates are that about 8% of your income goes to VAT.
  • a-saleh 9y ago
    Thanks! My brain kinda failed me there :)