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I will provide a clarifying example: Imagine a person in Portugal has a 1000€ salary, and the state takes 40%, the person has 600€ to live. A person in German
by fidelramos 6y ago
I will provide a clarifying example:
Imagine a person in Portugal has a 1000€ salary, and the state takes 40%, the person has 600€ to live.
A person in Germany gains 3000€, the state takes 60%, the person has 1200€, double the Portuguese.
Cost of living in Germany is higher, but not twice that much. And the cost of living already factors in some taxes, such as VAT, so it's not an apples-to-apples comparison.
- dahauns 6y agoAh, now I understand what you meant with "effort", i.e. that the disposable income after taxes normalized for purchasing power would be lower in Portugal than e.g. in Sweden, right? Hm...that's a good point actually - net PPP-adjusted household displosable income is definitely lower in Portugal: http://www.oecdbetterlifeindex.org/topics/income/ http://www.oecdbetterlifeindex.org/topics/income/