4 ms·

Someone is employing you. The tax burden is effectively split between you and them, even if nominally you are paying it. You pre tax salary is an expense to y

Someone is employing you. The tax burden is effectively split between you and them, even if nominally you are paying it. You pre tax salary is an expense to your employer, which if not expensed, would likely get taxed at the highest tax rate. Wealth is again, mostly just leverage on the working class future product. in that sense they already own atleast half of it, just defining it as income instead of wealth.

ajsnigrutin 5y ago
What I'm saying is, that I, in slovenia, pay around a half of my gross income in different taxes and "benefits" to the government. If my income is around the slovenian average (average is a bit below 2k eur montly, but i'll round it up), my "gros-gross" from 2k(what my employer has to pay, because of additional taxes) is 2.322eur, and I get 1300eur net to my account (55%) - the rest goes to the government. (employer pays 27.864 yearly, and you get 15.600 yearly) If you're average, or a bit above average, you pay around a half of what you make to the government. Due to income tax brackets, this percentage changes (eg, my 10k gross, means 11.610eur the employer, and I'd get 5176eur (~45%) into my account)... 10k is basically "rich" here. (Employer pays ~140k yearly, and you get ~62k net yearly) But, if your employer is willing to pay 11.610eur per month for you, and you want to get more out of that, you can become an independent contractor in slovenia (to have medical and pension insurance), and this will cost you ~500eur per month (including the costs of minimum accounting and a new bank account), so ~6k per year. Then you open a LLC in bosnia, which will cost you a smiliar amount of money (paperwork, accounting,...), so another 6k eur. Then your bosnian company charges the 140k for your work to your employer, and get taxed by bosnian rates, at only 10% on the first 100k of profit (so 140k-12k is 128k, so the first 100k is taxed at 10%, and i'm not sure about the next bracket, but let's say 30%, so 90k net from the first bracket, and ~20k from the second one), which means you get ~110k net income, or a bit over 9k monthly (almost 80%) So, if you don't earn a lot, you're stuck with high taxes. If you earn a lot (by slovenian standards, 10k is a lot), you can avoid most of the taxes, by starting a company in bosnia. If you earn a lot-lot (millions), you have even more posibilities of avoiding taxes, and pretty much every rich person does this to minimize their taxes. So, I don't want the current 55% (sum of all) taxes to be raised to 90% (or whatever) for the rich, I just want them to pay the current 55% at all, and not be able to avoid them and pay only 20% (which is less percentually than a minimum wage worker pays).
- naveen99 5y ago
  My point is the employer already effectively pays the 55% tax rate for the minimum wage worker. The employer has to budget for the pretax gross pay of the worker. From the point of view of the rich, poor people’s income tax is rich people’s consumption tax. rich people consume poor people’s labor.

ajsnigrutin 5y ago

What I'm saying is, that I, in slovenia, pay around a half of my gross income in different taxes and "benefits" to the government. If my income is around the slovenian average (average is a bit below 2k eur montly, but i'll round it up), my "gros-gross" from 2k(what my employer has to pay, because of additional taxes) is 2.322eur, and I get 1300eur net to my account (55%) - the rest goes to the government. (employer pays 27.864 yearly, and you get 15.600 yearly) If you're average, or a bit above average, you pay around a half of what you make to the government. Due to income tax brackets, this percentage changes (eg, my 10k gross, means 11.610eur the employer, and I'd get 5176eur (~45%) into my account)... 10k is basically "rich" here. (Employer pays ~140k yearly, and you get ~62k net yearly) But, if your employer is willing to pay 11.610eur per month for you, and you want to get more out of that, you can become an independent contractor in slovenia (to have medical and pension insurance), and this will cost you ~500eur per month (including the costs of minimum accounting and a new bank account), so ~6k per year. Then you open a LLC in bosnia, which will cost you a smiliar amount of money (paperwork, accounting,...), so another 6k eur. Then your bosnian company charges the 140k for your work to your employer, and get taxed by bosnian rates, at only 10% on the first 100k of profit (so 140k-12k is 128k, so the first 100k is taxed at 10%, and i'm not sure about the next bracket, but let's say 30%, so 90k net from the first bracket, and ~20k from the second one), which means you get ~110k net income, or a bit over 9k monthly (almost 80%) So, if you don't earn a lot, you're stuck with high taxes. If you earn a lot (by slovenian standards, 10k is a lot), you can avoid most of the taxes, by starting a company in bosnia. If you earn a lot-lot (millions), you have even more posibilities of avoiding taxes, and pretty much every rich person does this to minimize their taxes. So, I don't want the current 55% (sum of all) taxes to be raised to 90% (or whatever) for the rich, I just want them to pay the current 55% at all, and not be able to avoid them and pay only 20% (which is less percentually than a minimum wage worker pays).

naveen99 5y ago
My point is the employer already effectively pays the 55% tax rate for the minimum wage worker. The employer has to budget for the pretax gross pay of the worker. From the point of view of the rich, poor people’s income tax is rich people’s consumption tax. rich people consume poor people’s labor.