4 ms·

The 50% is calculated from all benefits (vacations, etc). For a large company and hourly wages, it can go up until 95%. Source: http://www.guiatrabalhista.com.

by d0100 6y ago

The 50% is calculated from all benefits (vacations, etc). For a large company and hourly wages, it can go up until 95%. Source: http://www.guiatrabalhista.com.br/tematicas/custostrabalhistas.htm http://www.guiatrabalhista.com.br/tematicas/custostrabalhist...

mrep 6y ago
Don't know how accurate this website [0] is but it shows a 68.17% employment cost versus 31.42% for sweden [1]. Wow that is a lot if it's true. [0]: https://papayaglobal.com/countrypedia/country/brazil/ https://papayaglobal.com/countrypedia/country/brazil/ [1]: https://papayaglobal.com/countrypedia/country/sweden/ https://papayaglobal.com/countrypedia/country/sweden/
vidarh 6y ago
The person I replied to argued 50% of a person income would go to tax: > and then pay 50% of everything that you make in taxes for this wonderful protection For non-salary labour costs to make up a large amount relative to salary is a very, very different argument.
- controversy 6y ago
  Sweden places the tax burden on the individual not the corporations. Their Corp tax rat is 21%. The same rate that the Republicans pushed for in the tax change. The difference is the average citizen is taxed at 48% vs the US average of 21.
  - walshemj 6y ago
    But does that take health care and other benefits into account ?
    - controversy 6y ago
      It takes into consideration health care.
      - walshemj 6y ago
        Really I am not convinced - I know a UK expat (worked for Citi bank) and he was paying well over 15% just for heath care just for him - and his wife already had federal benefits (Something senior in the FBI)
  - vidarh 6y ago
    Total tax wedge (which includes taxes paid by the employer) for an average Swedish citizen without children is ~43%. For one with children it is lower. Total taxes paid by the employee for an average Swede is closer to 25%. The highest marginal rate for someone on an average salary in Sweden is around 48% for the total tax wedge, but someone on the average is not paying that marginal rate. For the same categories the total tax wedge for the US is 24%, and the total tax ~18% (for comparison the marginal rate for an average earner in the US in the same category is 40.8%) Source: OECD Taxing Wages 2020
zorked 6y ago
If you look at the spreadsheets you will see, for example, the 13th salary included as overhead. It's not overhead: it's part of employee income and goes directly in their pocket. The 95% figure is for hourly employees and counts worst-case expenses over their raw hourly rate. In every other country vacations (including weekends!) are just counted as employee income and in that spreadsheet it's accounted as some sort of tax. Every country's overhead rate would go up if you accounted things in this absurd way. The FGTS is a really stupid scheme that should die but ultimately goes into the employee's pocket, so it's also a form of income and not a tax. (It's a kind of mandatory savings account.)

by d0100 6y ago

mrep 6y ago

Don't know how accurate this website [0] is but it shows a 68.17% employment cost versus 31.42% for sweden [1]. Wow that is a lot if it's true. [0]: https://papayaglobal.com/countrypedia/country/brazil/ https://papayaglobal.com/countrypedia/country/brazil/ [1]: https://papayaglobal.com/countrypedia/country/sweden/ https://papayaglobal.com/countrypedia/country/sweden/

vidarh 6y ago

The person I replied to argued 50% of a person income would go to tax: > and then pay 50% of everything that you make in taxes for this wonderful protection For non-salary labour costs to make up a large amount relative to salary is a very, very different argument.

controversy 6y ago
Sweden places the tax burden on the individual not the corporations. Their Corp tax rat is 21%. The same rate that the Republicans pushed for in the tax change. The difference is the average citizen is taxed at 48% vs the US average of 21.
- walshemj 6y ago
  But does that take health care and other benefits into account ?
  - controversy 6y ago
    It takes into consideration health care.
    - walshemj 6y ago
      Really I am not convinced - I know a UK expat (worked for Citi bank) and he was paying well over 15% just for heath care just for him - and his wife already had federal benefits (Something senior in the FBI)
- vidarh 6y ago
  Total tax wedge (which includes taxes paid by the employer) for an average Swedish citizen without children is ~43%. For one with children it is lower. Total taxes paid by the employee for an average Swede is closer to 25%. The highest marginal rate for someone on an average salary in Sweden is around 48% for the total tax wedge, but someone on the average is not paying that marginal rate. For the same categories the total tax wedge for the US is 24%, and the total tax ~18% (for comparison the marginal rate for an average earner in the US in the same category is 40.8%) Source: OECD Taxing Wages 2020

zorked 6y ago

If you look at the spreadsheets you will see, for example, the 13th salary included as overhead. It's not overhead: it's part of employee income and goes directly in their pocket. The 95% figure is for hourly employees and counts worst-case expenses over their raw hourly rate. In every other country vacations (including weekends!) are just counted as employee income and in that spreadsheet it's accounted as some sort of tax. Every country's overhead rate would go up if you accounted things in this absurd way. The FGTS is a really stupid scheme that should die but ultimately goes into the employee's pocket, so it's also a form of income and not a tax. (It's a kind of mandatory savings account.)