4 ms·
The study defines upper class as the top 10% of net income (after tax and mandatory insurances, after transfers such as pension and child benefits, and includin
by FabHK 7y ago
The study defines upper class as the top 10% of net income (after tax and mandatory insurances, after transfers such as pension and child benefits, and including a rent imputation for home owners). The study [1] does not explicitly mention capital income (capital gains, interest, dividends), but I have no reason to believe that they were excluded (insofar as they are also liable to taxation at 25%).
[1] https://www.iwkoeln.de/fileadmin/user_upload/Studien/Kurzberichte/PDF/2019/IW-Kurzbericht_2019_Einkommensverteilung.pdf https://www.iwkoeln.de/fileadmin/user_upload/Studien/Kurzber...
- marvin 7y agoDepending on the tax system, a wealthy person may have a lot of leeway in choosing the amount of investment income they’ll realize for tax purposes. So someone with $10 million in stock market investments may choose to withdraw none, or only a small part of the returns generated, placing them in the low income category.