3 ms·
45% is the top rate. 42% kicks in 57k income. 45% at 274k. You're right that the effective rate might be less for $100k, but not much. The curve is quite steep.
by titzer 6y ago
45% is the top rate. 42% kicks in 57k income. 45% at 274k. You're right that the effective rate might be less for $100k, but not much. The curve is quite steep.
https://en.wikipedia.org/wiki/Taxation_in_Germany#/media/File:Income_Tax_Germany_2010.png https://en.wikipedia.org/wiki/Taxation_in_Germany#/media/Fil...
- titzer 6y agoAlso, VAT is high in Germany.
- iso1631 6y agoWho pays vat? Less than 10% of my monthly outgoings are on VATTable things, and most of that expenditure is because I bought a new car rather than a second hand one.
- cwhiz 6y agoBased on that chart, the effective tax rate is not near 42%. It actually appears to be closer to 31-35%, which is almost exactly what the $100k person in NYC would pay. I think the issue that most non-US citizens fail to realize or comprehend is that most people in America don't pay any tax at all. The labor participation rate is 61.5% and then half of the people that do work still don't pay any effective taxes due to all the credits and deductions. A minority of earners support the entire tax base. ...and then, of course, we frivolously waste the revenue we do generate.
- titzer 6y agoI am a US citizen, and I've lived abroad. Americans are being fleeced, and the entire mindset is that infrastructure is a cost, rather than an investment. It's crazy that we spend so much on "defense". The words of Eisenhower's parting address were not heeded. But, regardless. If I were in charge I would fire the entire management of Amtrak and all Metro rails and just put the Germans, Swiss or Japanese in charge of it.