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In germany it is even worse. The tax rate is highly progressive, topping off at 50,5%. But the additional social security and penson payments are capped, so abo
by rklaehn 7y ago
In germany it is even worse. The tax rate is highly progressive, topping off at 50,5%. But the additional social security and penson payments are capped, so above a certain wage you actually pay less in total for social security, pension and taxes. There is a big hump which you need to overcome to become really wealthy.
Of course once you are so wealthy that the majority of your income is passive income from e.g. stock market gains, the capital gains tax is at 25%.
The situation is so bad that in relation to what your employer pays for you (Arbeitgeberbrutto), you get much less than 50%.