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I disagree with this pretty firmly, I'm afraid :-) Berlin can be cheap relative to other capitals (though this is getting less true) but the extent to which th
by davnicwil 7y ago
I disagree with this pretty firmly, I'm afraid :-)
Berlin can be cheap relative to other capitals (though this is getting less true) but the extent to which that's the case depends on your personal choices.
Public infrastructure is another matter because it serves everyone and everyone contributes - there needs to be a minimum bar. And yes, if I pay the same taxes as everyone else, I want a comparable level of service and convenience in my infrastructure to what people in the other cities get.
- luckylion 7y agoI meant "cheap" compared to other German cities. No matter what your personal preference is, you'll pay significantly less in Berlin than you would in Hamburg, Munich, Dusseldorf, Cologne, Frankfurt etc, regarding rent, but also things like eating out at a restaurant. The taxes aren't the same as well - local infrastructure isn't a federal issue, so federal income tax doesn't pay for that. Berlin's tax factor for companies (a major part of local taxes) is 410%, compared to Hamburg's 470%, Munich's 490% or Cologne's 475%. Berliners have decided to go with lower taxes to attract companies away from other cities, so Berlin has less money to spend on public infrastructure, even though Berlin gets a lot of subsidies from other states (2-3bn/year).
- davnicwil 7y agoThat's very interesting, thanks, I didn't realise that was the case with the taxes. I assumed that some percentage of each person's personal income tax would end up being spent on infrastructure - I actually find it hard to believe it's not, i.e. that it all comes from tax on businesses, but if what you say is the case that does make it feel a little less unfair.